Business contracts

Abstract

The legally binding agreements that is essential for almost every business is known as business contracts. If you own or thinking to start a new business, you definitely need a business contract to deal with the employees, customers, vendors and other people related to your business directly or indirectly. The binding on the parties makes the contract special and crucial for any kind of business dealing. After the contract has made if one party doesn't hold up its end of negotiate, the other party has all the legal remedies for any resulting compensations.

Abstractii

Introduction1

Discussion1

Different types of contracts1

Four essential elements of business contracts1

Offer1

Acceptance2

Consideration2

Intention of legal consequences2

An analytical discussion of the legal issues that are involved2

Oral contracts3

Written contract4

Standard agreement VS Custom agreements4

Other legal contract issues5

A discussion of ethical considerations in business5

A discussion of the legal impact technology has on this issue6

Suggestion or ideas for improvement in this area of law8

Conclusion9

Reference10

Business contracts

Introduction

The following paper discusses the types of business contracts and other regulations relevant to these contracts in detail.

Discussion

Different types of contracts

The different types of contracts include:

Sale and purchase of a business agreements

Plant and equipment leases

Agreements between the partners

Leases of business premises

Employment agreements

Four essential elements of business contracts

In order to be legally binding it is necessary that the contract contains four basic elements. These are:

Offer

In order to do something there must be a definite, clearly stated offer. For example a sub-contractor sends a quotation and an offer to lease to the main contractor.

Acceptance

One can only accept what is offered. In simple words the offer must be accepted precisely as offered without circumstances. If there are any new terms that are suggested later than it is regarded as a counter offer which can be accepted or rejected. Before making an agreement there are a number of offers and counter offers no matter, who made the final offer, the only thing that brings the negotiations to an end is the acceptance of that offer. This is only possible by establishing the different terms and conditions of the contract.

Consideration

The contract must be supported by important consideration in order for a contract to be binding. This means, one party must make some promise in return for a promise from the other party in order to provide an advantage of value (Painter, 2013).

Intention of legal consequences

It is necessary for a contract that both the parties made a legal binding agreement. That is, when the parties enter into some contract they must create some legal relations and must know that the agreement they made can be enforced by law.

An analytical discussion of the legal issues that are involved

Let us assume a common incidence for a small business. Our small business in this case acts as a landscape contractor. The same rule is applied to any other service related business. The small business owner speaks with a customer. They agree to make a contract that installs a new lawn. For all this procedure a time frame of four weeks and a total sum of $5000 is ...