What is the meaning of a business contract?
A business contract is an agreement between at least two parties who promise to do or not do something in exchange for money or other compensation. Some small business owners use business contracts to specify services with clients according to the fees they charge.Contract CreationMany business contracts are written documents. However, laws permit the formation of a business contract by verbal agreement, or the implied conduct of the parties. To avoid legal hassles, small business owners should get everything agreed upon in writing.Types of Business ContractsThe typical form of an agreement is a document spelling out the terms with a signature page at the end. Other types of business contracts include a “letter of agreement,” a “memorandum of understanding,” a “purchase order” and a “bill of sale.”Parties to a Business ContractThe parties to a business contract must be deemed legally competent to enter the agreement. Otherwise, a court can make the contract void. Age and mental disabil
