Agreements and contracts

Junior (College 3rd year) ・Art ・MLA

In the business world, there are several agreements made between entities or people. These agreements are valid, enforceable, and binding under the law. Contracts define each party's rights and obligations as well as the consequences of taking opposing action. Contract law is a security precaution that both businesses and individuals utilize to protect their assets.
A well-written agreement between the parties is crucial for the sustainability of the business in the early stages of operation when there are partners or shareholders. To protect both sides' rights and, as a result, reduce the possibility of disputes and misunderstandings, the parties' obligations must be clearly stated. Learning about contracts enables one to develop skills required to write legally appropriate contracts and understand ways to avoid choices that could make the contracts null and void. A fight or a change of mind by one party cannot merely void a contract. According to the law of contract, an agreement between the parties, going contrary to the agreement, or filing a petition in the court, is required for termination. Understanding the law of contract can enable one avoid bad contracts and lawsuits. 

Seeking legal advice is necessary before agreeing to binding contracts. In a case where a large business enters into a contract with a small business proper legal advice is required. Legal advice is necessary because the large company may want to take advantage of the later by using complicated legal terms which the small business may fail to understand. The use of Attorneys or professionals with an understanding of contract law would help both businesses in agreeing to suitable contractual terms. The knowledge of contract is helpful in negotiating terms that profit their companies and ways to amend the contract in case changes are needed. 

The knowledge of contracts is essential in making business or individual agreements. It provides a legal measure that allows a contracting party to take legal action against the party in default. Through negotiations, both sides set up the terms of the contract to which they must follow. A contract is, therefore, a tool for dispute resolution and controls many agreements thus creating smooth running of business operations.

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