Business Contracts & Agreements
Business contracts are important for your operational processes and the long-term success of your business. Learn why and how to create a legally binding contract for your business.
What is a business contract?
A business contract or business agreement is a legally binding document. It requires 2 or more parties to fulfill an obligation. A business contract must include the following elements to legally enforceable:
- Consideration. This outlines what each party is agreeing to do and not do.
- Agreement. An offer is made in the contract, and one party signs, agreeing to the terms in the contract.
- Definitions of key terms. Near the beginning of the contract, it may be explained what certain words will refer to in the rest of the document. For example, "the first party" may be either the business that is accepting the contract or the business that is offering it.
- A place for materai and signatures.
- Other important aspects that relate to payment and the consequences for contract violations.