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Formation and performance of sales and lease contracts - Term Paper Example

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In the contemporary society there have been increased business activities and business premises. For there to be harmony in the business world, there has to binding…
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Formation and performance of sales and lease contracts

Download file to see previous pages... Formation and Performance of Sales and Lease Contracts
A business entity is a legal entity designed for goods and services provision to businesses, government entities and other businesses mainly predominant in the capitalist economies. The majority of the businesses are privately owned with the primary formation objective of making profits. Business entrepreneurs have as the main objective receipt and generation of financial return in exchange for work and acceptance of risk. There are other business entities not formed with the profit making objective like the cooperatives, state corporations and none profit making businesses (Heintz & Parry 7).
For there to be less conflicts in the business world, there has to be generally accepted terms of engagement. A contract is a legally binding agreement between legal persons for an exchange of services and goods that are of value. A valid contract is an emergence of a made offer that has been accepted. Using a contract in business transactions binds the engaging parties to abide by the terms as non performance of the responsibilities as per the requirements of the contract may lead to a lawsuit and payment of damages.
When the contractor makes an offer and the contracted accepts the offer, then the parties are legally bound by the terms of the contract (English, Simon & Solomon 212). When the parties involved are ad idem (meeting of the minds), then none of them can ignore the contractual obligations bestowed on him.
A business can enter into a legally binding contract when buying or providing goods or services, leases or real estate, selling of the business premise, hiring a contractor, entering into partnerships and joint ventures, franchising, non complete agreements and confidentiality agreements.
Written contracts: are generally produced on paper or electronically and are usually easier to uphold compared to ...Download file to see next pagesRead More
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