Aspects of Contract and Business Law | Solid Essay Sample for Students

Published: 2022-04-01 14:47:56
Aspects of Contract and Business Law | Solid Essay Sample for Students
Type of paper:  Essay
Categories: Contract Business law
Pages: 6
Wordcount: 1508 words
13 min read
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Modern business is impossible without clear regulation of mutual obligations between two or more parties. Any organization or person must strictly adhere to the original agreements when buying goods or providing services. Otherwise, the business can turn into Russian roulette and total anarchy. That is why the international community has developed a set of measures to simplify many financial and legal processes. All entrepreneurs, startups, and business owners must consider and accept contract and business law aspects. But what exactly are all the legal details, and what aspects are most important? Here are the key positions that are extremely relevant to the modern world.

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What Is a Contract and What Is Its Purpose?

This term is widely used in business and jurisprudence, but not all beginners understand what is behind it. So, a contract is a binding agreement between two or more parties that complies with legal norms and rules. As a rule, the contract regulates the rights and obligations of the parties and possible force majeure. Such a document contains a clear description of the services or goods that the parties are obliged to transfer.

Elements of contract

Such documents are extremely important in today's world. Moreover, without a contract, all business partners do not have guarantees that one of the parties will adhere to oral agreements. All contracts are valid on the territory of certain countries or the entire Earth, depending on certain nuances. That is why it is important to enter into agreements protected by law. With guarantees, all parties will be able to predict the outcome of agreements and expected profits.

What Is Business Law?

This term is the body of law that applies to the rights, duties, responsibilities and defines the parties to the agreements and the degree of their responsibility. Business law consists of many different areas, starting with the regulation of duties and ending with legal liability for any deviations from the terms of agreements. In other words, the legal framework regulates how contracts are drawn up, how they work and the way all people are associated with business structures. As a rule, the general norms and rules for the work of organizations are the same for all countries. Key differences lie in liability for non-compliance with agreements and certain forms of legal punishment.

The Main Types of Contracts

There are four main elements of contracts: offer, acceptance, capacity, consideration. These parts are important for understanding how modern legislation works and how business relations are regulated in the civilized world. Here are more detailed descriptions of each term.

Offer

An offer is a kind of a promise, which an offeror makes to an offeree about certain business activity. As a rule, such a promise has a clear intent and becomes legally enforceable when receiving an offer from one of the parties. This format of business interaction is quite common and does not differ much in interpreting rights and obligations in any country. At the same time, a detailed reading of any proposal's points allows you to avoid hidden pitfalls.

Acceptance

Acceptance is an addition to the main offer that regulates a specific offer and the acceptance of key conditions for further legal interaction. One of the clearest examples of the so-called acceptance procedure is purchasing a chocolate bar in a vending machine. This machine "offers" you to put a coin in the coin acceptor to activate the buy mode. Once this action is completed, you will have the right to choose any chocolate bar in a certain price category. By paying for sweets and pressing the button, you accept the "machine" condition, and the offer becomes confirmed from both sides.

Capacity

Capacity is a term that regulates the rights of people and organizations to enter into contracts in any form with obligations to all parties or third parties. This right does not apply to minors, bankrupts, or incapacitated persons. As a rule, minors can enter into contracts under certain conditions for employment or the supply of necessary goods. In all other cases, legal relations of this kind are impossible.

Bankrupts cannot participate in the drafting and signing of contracts involving payments, dividends, or the supply of goods/services. The fact is that bankruptcy means a temporary entitlement to financial transactions and the fulfillment of financial obligations. This measure is designed to protect people or companies from financial fraud.

Incapacitated persons cannot sign contracts or have limited rights for legal obligations and responsibilities. The main reason is the inability to understand the causal relationship or the inability to fulfill certain conditions of contracts. That is why the legislation of many countries automatically restricts such agreements.

Consideration

A contract is only part of an agreement between two or more parties. It is a consideration like addition and a clear regulation on what a promisor and a promise can count on. Mutual legal promises are the willingness of the parties to perform some action, make a payment, or send the goods. In addition, consideration is an important clause of any contract that regulates fines and penalties if one of the parties has not fulfilled certain requirements or promises.

Contractual Terms

Any contract is designed for certain dates and periods since the parties have goals that need to be completed quickly. Deadlines are important for understanding the procedure for fulfilling obligations and receiving goods and services in the established format. Failure to comply with the deadlines entails the cancellation of contracts, sanctions, penalties, or certain actions to recover losses. Any contract should provide technical nuances so that individuals or legal entities can count on compensatory mechanisms.

Why Is Business Law and Contracts So Important to the World?

The global community concludes thousands of contracts every hour, and a clear legal basis for interaction between companies and individuals is the way to maintain control. In addition, all business parties need to understand the conditions and rules, following which they can count on a positive result. There are so-called international contracts that are designed to create guarantees for all parties, regardless of their country of residence. As a rule, such contracts are regulated by an international court as a guarantor. Such a strategy helps support integrity and compliance with the conditions.

It is worth noting that the first prerequisites for creating business guarantees and contracts were undertaken in the 16th century. The Italian jurist Benvenuto Stracca wrote the first treatise describing the parties' obligations, the bankruptcy procedure, the transfer of property to third parties, and the force majeure process. Over time, the basic principles of business law have become relevant for the whole world since clear conditions for cooperation are the basis of legal harmony.

Can People and Companies Evade Contractual Obligations?

Unfortunately, such cases are really common due to tricks and loopholes in the description of contract terms. The fact is that each contract is something like a minefield that you have to go through before putting in your signature. Usually, all sentences are as vague as possible to create double interpretations and backdoors that help to avoid responsibility. People and companies must agree in advance on each clause of the agreement and carefully analyze each position and statement. Otherwise, the contract will be extremely unprofitable since one of the parties may refuse to perform duties.

At the same time, organizations should understand that risk minimization is the main strategy when creating any documents and agreements. A reasonable compromise is needed for everyone, so the contract must contain equal rights and opportunities. Adhering to fair rules and demonstrating openness is what the modern market needs to support a policy of transparency. As a rule, most modern people adhere to a similar strategy and try to demand the same from companies.

Are Changes Needed in the Modern Business Law System?

In some ways, the current legal system is outdated and needs more innovation and clearer language. Many people and organizations need an innovative approach to contract drafting. For example, all rights and obligations should be clear and extremely concise. All people have the right to understand all the rights and obligations assigned to each party. In addition, humanity needs to digitize all legal documents and online verification. Special web registries are an opportunity to avoid fraud and create legally favorable conditions for business development. Such innovations will allow saying no to corruption, deceit, and other tricks.

Conclusion

Understanding contractual aspects and business law are critical for people and organizations. In addition, the ability to analyze obligations and penalties allows you to determine in advance the appropriateness of any agreements. The modern community must understand how to sign contracts correctly and what points should become key to providing financial guarantees and force majeure.

As a rule, a preliminary analysis of each clause in the contract is the path to legal literacy and foresight. All legal aspects are important as even the smallest loopholes in contracts can nullify prior expectations. Fortunately, a detailed analysis of all aspects can level the fears and uncertainty of the parties in respect of the agreements. Such options are extremely important for maintaining the global legal balance.

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Aspects of Contract and Business Law | Solid Essay Sample for Students. (2022, Apr 01). Retrieved from https://speedypaper.net/essays/aspects-of-contract-and-business-law-solid-essay-sample-for-students

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