Why Contracts Are Important In Business?




Why Contracts Are Important In Business? 

What is a Contract? 
The contract is basically a signed agreement between the two parties in which the expectations of both parties are clearly mentioned and agreed. In any case either of the party willing to withdraw at later stage then they will follow the agreed terms and conditions of conditions of contract as per mentioned price for a service / product.   
Contracts are basically a source of building relationship between two companies. Once both the companies agree and sign the contract then they are bound to fulfill and provide services to each other on the specific project so that the requirements are fulfilled of each organization without any delay.

Reasons Why Contracts Are Important: 
There are various reasons which indicate why contracts are an important source in establishing good business relationships between the companies. However, such a business relationship even leads to a long-term Joint Venture between the two companies for future projects.  
In today’ world whatever the industry a professional is associated with like insurance, technology, security, telecommunication, construction, etc. a contract is mandatory for a firm to sign a deal with other entity so that all legal terms are clearly mentioned prior to work and services should be performed as stated and should meet the time schedule.  
Purpose of Describing a Time Frame in Contract: 
 It is very important to mention a specific time frame in a contract by a client. For example, project duration is of 06 months then the other party should keep in view the exact completion schedule or should communicate timely before signing to the client with a valid change in the duration of completion.  
In case, the second party agrees to the project duration and the project is not completed on time then liquidated damage will be bear by the second party as stated in the contract by the client.  
Payment Terms in Contract: 
For all the reasons, the client should keep in mind while writing a contract the payment terms to be mentioned in an appropriate manner. A proper payment should be listed including the Advance payment before initiating a project, progressive payment, and the retention payment. Similarly, the second party should clearly review the payments mentioned in the contract and can discuss with the client before signing.  
Conclusion: 
We have mentioned above some of the highlights that are important for a contract. First Party should be very careful while drafting a contract as it reflects the clear position of a company in the market. To initiate a good business relationship with a company a contract signing should be done to avoid any future misconceptions and both the parties will have documented evidence in hand.    

Comments

Post a Comment

Popular posts from this blog

Roles of Women in Global Security

  Introduction Women are generally perceived as victims of controversy. However, this view conceals the important roles women play as pioneers, particularly in fostering final struggles, building efforts for post-conflict reintegration And economic life, as well as driving the association into camps for uprooted residents. At the Role of Women in Global Security conference, the participants gave distinguished ideas for ways of helping, equipping and empowering women to turn out to be such leaders in their networks. In the demonstrations that influence their countries, women are dynamic players in war zones. They would become warriors. They can become the primary caregivers for their households, more dynamic in conflict-related informal or formal sections of the economy, or more dynamic in peacemaking bunches. The ill effects of sexual viciousness and elimination are also encountered by them. Nevertheless, during war and in its aftermath, women are forbidden time after time from e...
Read more

Challenges in supply and logistics for the UK event industry

  Introduction The United Kingdom hosts a stirring number of noteworthy international events every year.  Withal, in a highly competitive and fast growing world there is always vying for events business. As a result, it is scathing that the United Kingdom abandon a genuine ache for such events to spawn glory back to their country. And they should drive to motivate the world to win events, as well as to ensure that events held on our shores are ardently and indelible welcomed. These events should be organize in the way which continuously sway both the organizers and the attendees to reinstate to UK for such events . The UK events industry is estimated to be worth around £70 billion in direct spending.Over £31 billions  is counteracted of  events, conferences,exhibitions and meetings. It also includes leisure events, such as arts and cultural events, musical concerts, musical night events and festivals, sport activities and recreational events. Business events iclu...
Read more

Gender discrimination in Pakistan

  When I began researching gender, I realized that certain people had no ethics about handling people. I was angry about gender segregation, gender discrimination, sexual assault, gender assumption. But my current emphasis is on Pakistan's gender inequality. Pakistani women make up over half of the workforce. Still, women are being treated inhumanly inside their homes by patriarchal husbands, the dominant males in various forms such as violence against women, Sawara, Vani, Karo Kari, Honor Killing, Stoning Women, Forced Marriages, etc. Case#1 In Pakistan Gender discrimination is an alarming issue. Discrimination in society means socioeconomic, cultural, legislative discrimination. It needed new male and female status sexuality in a system. Before Islam's advent, the plight of women in the Arab world has been deplorable. Women had little respect at the lowest levels. There was a tender trend to bury girls alive. In the Islamic era, trend shifts and utmost importance were gra...
Read more