Read and discuss the contract

Text 2.

Read and discuss the text.

A business contract is a legally binding agreement between two parties for an exchange of services that are of value. A business contract is often used for:

· Hiring or being employed as an independent contractor

· Buying or providing services or goods

· Leases and real estate

· Selling your business

· Partnerships and joint ventures

· Franchising

· Confidentiality agreements

· Noncompete agreements

A contract often involves paying for services, but non-monetary contracts are just as valid.

An oral contract is a spoken agreement that is as valid as a written contract. For example, if you have a promise that a job will be complete for monetary or other compensation, you have created an oral contract. Oral contracts are legally enforceable, although they are frequently subject to misinterpretation and they can be difficult to prove in court because they often come down to one person's word against the other. Moreover, some types of contracts must be in writing, for example, contracts for the purchase or sale of any interest in real property.

Written contracts are produced on paper or electronically. Legally, a written business contract is easier to uphold than an oral contract because there is a reference for the agreement. Whether your small business is providing or offering services, you should consider using a written business contract and including specific details about the agreement.

A business contract should be labeled "contract" or "agreement" at the top. The main characteristics of the contract include:

· Date of contract

· Names of parties involved

· Subject of the contract and the volume of delivery.

· Prices and the total value of the contract

· Time of delivery

· Terms of payment

· Transportation of goods

· The Seller’s guarantees (the quality of goods)

· Sanctions and compensation for damage

· Insurance

· Force majeure circumstances

· Arbitration

· General provisions

CHECKPOINTS:

1. What is a contract?

2. When are business contracts used?

3. How can you characterize oral and written business contracts?

4. What are the main contract items?

CONTRACT No. 345

Pervomaisk October 1, 2008

Joint-Stock Company ‘Plant ‘Fregat’, Pervomaisk, Mykolaiv region, Ukraine, hereinafter referred to as the Seller, in the person of Chairman of Board Victor F.Yatsevilov, acting in the virtue of the Charter of Company, on the one hand, and Arcata Partners sc, hereinafter referred to as the Buyer, in the person of Mr Marek Blaszczak, on the other hand, have concluded the present Contract on the following:

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