Written Contracts and Agreements
Organizations conduct business through written contracts and agreements, and consumers have come to expect written contracts when conducting transactions. Because a contract captures details of the transaction in writing, these instruments provide a number of benefits.
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Definition
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According to legal network DLA Piper, a contract is simply a legal agreement between at least two parties. Contracts and agreements document a set of promises that parties make to one another, in addition to the parties' rights and obligations.
Uses
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Written contracts and agreements serve to capture the details of a wide array of business transactions, ranging from simple consumer purchases to corporate mergers. In financial transactions like real estate or automotive purchases, parties can use written agreements to make, accept or decline offers.
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Benefits
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Written agreements and contracts specify the details of promises that two or more parties make to one another; each party can refer to the contract should questions arise later. These documents provide a reference for courts, should a dispute arise.
Considerations
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In some cases, one or more parties does not adhere to the written agreement; such cases may arise when the party does not understand the contract or does not wish to comply. In such cases, according to the 'Lectric Law Library, the adherent party may sue the errant party for breach of contract.
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References
- Photo Credit contract image by martin schmid from Fotolia.com
