Working in a business environment, you will inevitably come across contracts at some point. There are basic employee contracts you will encounter when hiring or starting a new job, but then there are more complicated contracts that require greater attention be paid. A contract is a legally binding agreement so they must be entered into carefully with a full understanding of the commitment.
Kinds of contracts:
Contracts can be written, verbal or both in some circumstances, with the more formal contracts being required in writing. Both kinds are legally binding if they contain the elements of a contract. Verbal contracts are hard to prove and rely on the trust of a person unlike written agreements with physical evidence.
Elements of a contract:
For a contract to legally binding it must contain;
- an offer
- an acceptance
- intention to create a legal relationship
- a consideration e.g. money
Before you sign:
- Read everything, including the fine print, carefully
- Ensure negotiated terms and conditions are included
- Seek legal advice
- Take time to consider and understand the contract
- Don’t be pressured into signing
- Never leave blank spaces on a signed contract, cross them out if irrelevant
- Make sure that you and the other party can make changes to the contract
- Keep a signed copy for your own records.