Contract in the general sense is a legally binding or legally enforceable agreement that is formed between two or more parties holding the capacity to form a contract. In India the formation and applicability of contract is ruled by The Indian Contract Act, 1872.
An agreement is a set of promises or promises that form consideration for each other, and the promise is formed when the proposal made by the parties is accepted by the other party to the agreement.
For drafting this contract, there are certain steps to be followed by the parties, which are given below:
Step 1: There should be a person or a party to the contract to whom the proposal of the contract is being made.
Step 2: Such person or the party should understand and also hold the ability to understand whatever is proposed through the draft of the contract or the contract for that matter.
Step 3: Once the person or party understands the proposal, should provide his or their assent thereto, which basically is the acceptance or non-acceptance of the proposal.
Step 4: Now the proposal becomes an accepted proposal, which is a promise being made making the draft now a legally enforceable law.
Business Contract
So, now let us specifically discuss what business contract is. Business is one field where there arises the biggest need for forming contracts despite of the same being industrial, professional, industrial or such other sectors. For getting the activities, processes, transactions, employment and such other operations or elements achieved organizations dependency on contracts or business contracts are high.
A business Contract can be understood as a legally enforceable agreement or contract which is formed between 2 or more parties for finalizing a business task or deal, binding the parties legally for carrying out the offer made and accepted via the contract.
In business, there will be a number of elements running at a time, ranging from the employment of human resources to vendor and supplier management along with the business or sales deals formed. This can be within the entity, say, with employees or shareholders, with the consumers or clients and even with the banks, government or such other institutions forming outside the entity. Hence, to have this done smoothly, having a well-written clause and agreement or contract elaborating on every element included and explained is important.
For this, it is again vital that the business contract is formed or drafted or written by experts with good knowledge, which would ensure both safety and the assurance of being legally enforceable by satisfying every element of a valid contract. Some of the contracts which are formed by businesses or entities would include the following:
- Partnership Agreements
- Contracts with Suppliers
- Contract with Employees
- Franchising Agreement
- Agreement for Joint Venture
- Contracts for Advertising
- Contracts for Transportation
- Lease for Real Estate
- Lease of Machinery and Equipment
- Contracts formed with Insurance Companies and Banks.
The list is not an exhaustive one and can be expanded to include various other types of contracts. With the expert team at Kanakkuppillai, we can assure you the best in market services for forming a contract and legalizing the same. We have experts who will be assigned to you for meeting all your requirements and getting the work done.
