Contract Samples

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A contract is considered to be a legally binding agreement document between two or more parties. It defines and protects the rights and responsibilities of all the parties involved in the agreement. A contract is governed by appointed applicable law and has to be respected by all the parties signing.

Why is contract drafting important?

Contracts are the best way to ensure that the interests of parties involved in a mutual agreement are protected under the law, and each of them will be bound to abide by the terms mentioned in the agreement. If one party breaks the contract, then the other party will have solutions available, which are known as remedies. 

It is best always to write down a contract. If one party ignores the terms and conditions of the contract, it can lead to legal consequences. In such situations, the court usually decides the party's fate that has committed the violation and issues the verdict in keeping with the terms and conditions of the contract.

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  • Which factors should be considered while writing a contract?

    • Mutual Consent ; An agreement only occurs when one party makes an offer to another, and the other party accepts it. When one party agrees with the offer, it is expected to be unconditional and properly communicated, for example, signing an employment contract.
    • Eligibility; Following parameters to be considered for drafting a contract:
      • For children under the age of 18, a contract can only be made if it is being accepted for necessities or education.
      • For people suffering from mental illnesses or under the influence of drugs/alcohol. In such a case, a legal guardian, conservator or custodian is able to make the decisions.
    • Consideration; Both parties must exchange value for a contract to be binding; this is known as consideration. It is an important part of drafting a contract between the involved parties.
    • Intention; Not every agreement between parties is a contract; it must be made clear that both parties have the intention to be a legally binding contract. During business agreements, it is a known fact that both parties are intending to enter a contract.
    • Entering into a contract with a minor; Under the law, some people do not have the power to enter contracts, and are not considered to be commercially able or of sound mind and judgement, these people include:
      • Children under the age of 7; in some countries a minor between the age of 7 to 18
      • Mentally unstable people;
      • People under the influence of drugs and alcohol.
  • Question & Answers related to Contract Samples

    • What presumptions apply on contracts?

      There is the presumption that they do not have the capabilities to understand the exact contents of the contract (sound mind & judgement). This means that the minor will remain protected under the law, which brings the other party to a disadvantage if the child opts to leave the contract.

      What are the different types of contracts?

      Unilateral and Bilateral, Express and Implied, Unconscionable, Adhesion, Aleatory, Option, Fixed Price Contracts. Cost-reimbursable (cost plus),Time and materials contracts,etc
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