Business Contract Case Study

1739 Words 7 Pages
Businesses often establish relationships with other companies, this is networking which creates profits and sometimes emerges, and this action is supported by a contract. According to our text entitled Essentials of Business Law, It defines contracts as a binding an agreement most of all contracts are enforceable by law. A contract is started by two different agents who are both required to fulfill duties in agreement with the contract.
A contract is described as a report showing agreement to any business trade, it is done orally but the written contract is upheld by law. Contracts create a plan and a guide for responsibility for both parties to up hold. Business relationships can affect the business entity. This business venture will explain
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If our company ACME didn’t understand the contract that was offered at the time, we may not be responsible for the breach. According to journal, author describes the following to be incompetent to agree into the contract. According the following persons is incompetent to contract. (a) Miners, (b) Persons of unsound mind, and (c) persons disqualified by law to which they are subject. This element in the contract is the consent is the steps toward the closing of a contract. When both parties sign the contract they have agreed to the terms, so when ACME accepts the business offer we will assign and validate the terms. The last term is Intention, which brings up the question of purpose, what is the purpose of the contract and the reason and benefits behind it, what do the parties expect to gain. For instance our company ACME expects for the company to pay us before they receive the merchandise and the party expects their orders to be fulfilled as …show more content…
This is very important because it details the terms and conditions. Such as termination what qualifies. Benefits such as health insurance and it details information about vacation time as well as our policy on sick days. Another important factor that is implied is the expectation of clients in regards to selling secrets to other companies, this causes grounds for termination and it could lead to civil action against the employee since they were in agreement to the contract.Employees are paid hourly As a company we are willing to offer raises this is an example of employment benefits, theses benefits are social security and health insurance, these are not just benefits, this is the law. Taxes are taking employees will have a certain job title that also allows them to read the description of the job that they are assigned. It is important to note that as an employee in our company they are required to sometimes fulfill another job duty in case of emergency. Employees will have to understand the knowledge about breaching and their own rights and benefits. If an employee doesn’t fulfill their duties and responsibilities they can get fired. Contracts for the employees are a list of our expectations and what employees should expect from us. Now even though the employee contract is fair a justified, there still some disadvantages to this contract. For instance if ACME were to hire an employee for a certain amount of

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