Business Agreement
Task 1
P1: Explain different types of business agreements and the importance of key elements required for the formation of a valid contract.
Business Agreement
Business Agreement is the mutual understanding or assent of two or more than two legally competent parties. It is done or agreed upon on the relative duties and rights regarding current or future performance. An agreement typicallydocumentsthe give-and-take of anegotiated settlementand a contract specifies the minimum acceptablestandardofperformance.
Types of Business Agreement
There are various types of business agreements depending upon the nature, type and operations / activities of the business. These types can be categorized into following categories based on the above stated criteria.
* General Business Agreements
* Business Employment Agreements
* Leases
* Sales Agreements
The General Business agreements contain Franchise Agreement, agreement with different agencies for advertising, insurance agreements, agreement on not taking legal actions, Settlement Agreement, Stock Purchase Agreement, business partnership agreement, privatization agreement etc.
The different types of Business Employment Agreement are Employment Agreement, Consultancy agreement, Sales Representative Agreement, Employment Separation Agreement, Reciprocal Nondisclosure Agreement etc.
Leases are of different kinds like Real Property Lease, Equipment Lease etc, and same is the case with Sales agreements, it also have different types of contracts and agreements like Bill of Sale, Agreement for the Sale of Goods, Purchase Order, Warranty, Limited Warranty, Security Agreement etc.
Key Elements of Contract
Elements of contract depend on the type and nature of contract, but some elements remain constant in most of contracts. Following are the most common elements of contract.
* An Offer can be defined as