Contracts are an integral part of any agreements, business, and organizations. Unlike in the lore’s where the word of someone is perceived to be as good as inscribed on a stone, the world now better relies on actual contracts written to the minutest of terms of conditions specifying every possible turn of events in the contract to avoid unfathomable futuristic risks and disappointments and in business terms – Losses.
1. Offer and Acceptance
Before a contract is to be drafted and finalized the right set of offers that will make into and reflected in the contracts needs to placed on the table for everyone to know and accepted before it makes to the contract.
2. Consent of both the parties.
A contract’s strength lies in adhering to it in both good times and bad times. For that to be achieved the contract is made in such a way that both the parties mutually agree to every terms and condition and stand by it till the termination of the contract.
3. Mutual and lawful consideration for the agreement.
Once the contract is signed on mutual agreement, the parties involved in the contract comply with every lawful straits and consideration of the agreement. Both the involved parties in the contract will be responsibly bound to it and fulfill their obligations on their respective parts.
4. Enforceable by law.
The rules and clauses added to the contracts should be relevant to the cause and enforceable and referenceable by the law and validated.
5. Parties should be competent to contract.
The terms and conditions in the contracts should be a win-win to both sides without proving to be a huge disadvantage to one and all benefited to another. The clauses should be taken into consideration for an equally healthy advantage for everyone involved.
6. The object should be lawful.
The whole purpose of the contract is that it must be legally bound and if not adhered, its subjected to legal actions so that the parties involved in the contracts do not feel fair and will avoid being pushed to loss when the other side ignores to respect their part of the deal.
7. Contract performance certainty.
A contract should yield the maximum benefit and let the involved people participate who in actuality are the direct considerations to the contracts which increases the possibility of a fail-proof performance of the contract rather than only the unintended departments looking into it and negotiating in general terms.
8. Functional Contracts.
When the contract is getting done by the people who actually involved in the purpose of the contract can give far more insights and add-ons and make sure the contract is fully functional from the date of sign till the termination of the contract.
9. No void contracts.
For the contract to hold the ground on its enforceability it should be legal in every way and not prove to be unobtainable, coerced or illegal by any means to be declared as void under the Contract Act or any other similar laws.
10. Mutual Signing
The contract is deemed final and live and carries the value when the involved parties agree to everything in the contract and sign away mutually respecting their responsibility for carrying out the contract.