Business_Contracts

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					Title:
Business Contracts

Word Count:
449

Summary:
A business contract is a legal promise made between two or more parties.
A contract may be drawn when the associated parties wish to enter into a
transaction like buying or selling, performing services, leasing
properties, collaborating in joint ventures, advertising, manufacturing,
distributing or selling goods, etc. The business contract is considered a
surety against cheating by any of the associated parties.


Keywords:
Contracts, Business Contracts, Legal Contracts, Employment Contracts


Article Body:
A business contract is a legal promise made between two or more parties.
A contract may be drawn when the associated parties wish to enter into a
transaction like buying or selling, performing services, leasing
properties, collaborating in joint ventures, advertising, manufacturing,
distributing or selling goods, etc. The business contract is considered a
surety against cheating by any of the associated parties.

The length of a business contract depends on the number of clauses being
mutually agreed upon. It may be of a single page or it may run into a
dossier of several pages. Every business contract is legally binding and
attracts relevant stamp duties. The general practice is to compose such
business agreements in the presence of lawyers of all the parties
involved.

The first   page of a business contract usually contains the names and
addresses   of the signatories. A brief description of their jobs can be
mentioned   along with their names. The date of signing the contract is put
up on the   first page.

The next part of the contract is called the recitals. This is a very
short description of the type of transaction the parties are going to
enter into. It is usually no longer than a paragraph. After recitals
follow the specifications, in which there is a detailed description of
the job the parties are to undertake. This part may run into several
pages and it contains a very succinct description of the exact job
portfolio. It sometimes contains formulas, diagrams, sketches and graphs
in order to better explain the nature of the job.

Payment comes in the next section. A very clear mention is made of the
remuneration that one of the parties is to give to the other. Either the
exact figure is mentioned, or at least the determining factors are
outlined. If time is extremely relevant in the completion of the job,
then the sentence “Time is of the essence” is included. Whatever the
conditions regarding the payment may be, they are to be put down in the
contract.

Apart from all this, there are several legal points covered. It is
written in the contract which state jurisdiction will apply in case of a
legal suit. Also, the tenure of validity of the contract is mentioned.

A business contract is a very delicate matter. It takes several
deliberations between the associated parties along with the involvement
of their lawyers to reach a final draft. There are sometimes several
negotiations and amendments in the agreement, until it becomes
satisfactory to all concerned. Only after mutual agreement are the
signatures put down on the document. All concerned parties have to
preserve a copy of the contract as long as it is valid.

				
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posted:6/25/2012
language:English
pages:2