Business Analysis : Fabulous Hotel Signed A Two Year Contract With The Head Chef

1205 Words Jun 1st, 2015 null Page
Contracts govern every aspect of our lives whether business, school or home. Adults sign contracts to buy a new car, lease an apartment, start a new job, obtain a student loan and even get married. Contracts are the source document by that promises to deliver a service, money or product. The days where men and women trusted one another and their word was their bond is long over especially in business. There is an old proverb “Better a lean agreement than a fat lawsuit.” (Book of Famous Quotes, 2015, p.1))Contracts set expectations and requirements for each party involved in the transaction. It is supposed to be a document that ensures each participant knows exactly what they are responsible for in the agreement. Communication is an important element in business and yet, many contracts are written in such a way that it is difficult to comprehend all the details involved in the transaction. Contracts serve as the rules of engagement between two contributors. Fabulous Hotel signed a two-year contract with the head chef and ads a clause that the chef cannot work in another hotel in the same city for a period of two years. Analyzing the five elements and the governing source of the Fabulous Hotel contract will ensure both sides of the pact have signed a valid and enforceable contract.
Five Elements of an Enforceable Contract
Contracts can contain thousands of words and although it may be a list of promises it is not a 100 percent guarantee that the promise is legally…

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