Contract Agreement
A Contract Agreement is a legally enforceable agreement that binds two or more contracting-parties that creates mutual obligations to the stated terms under contract law.
- AKA: Legally-Enforceable Promises Made by One Party to Another, Legally Binding Agreement Concerning a Bargain.
- Context:
- It can (typically) include Legally-Foundational Elements, such as:
- Contract Offer: A clear and definitive offer to provide something, possibly under specific terms and conditions (see Contract Offer and Acceptance).
- Offer Acceptance: Indicates a mutual understanding and intent to enter into a binding contract (see Contract Offer and Acceptance).
- Contractual Consideration: The exchange of value (e.g. money, goods, services) that are recognized as legally sufficient.
- Mutual Consent: Indicating that all parties enter the contract willingly and with full knowledge of the terms.
- Legality of Purpose: The contract's purpose and terms must comply with the law and public policy, ensuring that the contract is enforceable in a court of law.
- Legal Capacity: The legal ability of the parties to enter into a contract, meaning they have the authority and mental competency to do so.
- Contract Duration: The period during which the contract is valid and enforceable, often specifying start and end dates or conditions under which the contract may be terminated.
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- It can (typically) be affected by Contract-Related Tasks, such as: contract drafting, contract understanding and contract review.
- It can (typically) define Legal Entity Rights and Legal Entity Responsibilities/Legal Entity Duties.
- It can (typically) be governed by Contract Law.
- It can (often) address the risk of unexpected problems or costs.
- It can (often) ensure clear communication.
- It can (often) be managed by a Contract Management Process.
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- It can range from being an Organization-to-Organization Contractual Agreement to being a Organization-to-Person Contractual Agreement to being a Person-to-Person Contractual Agreement.
- It can range from being a Pre-Signed Contract to being a Active Signed Contract to being a Inactive Signed Contract.
- It can range from being a Valid Contractural Agreement to being an Invalid Contractual Agreement.
- It can range from being a Written Contract (with contract agreement content that follows a legal language) to being a Verbal Contract.
- It can range from being a Two-Party Contract to being a Multi-Party Contract.
- It can range from being a Simple Contract Agreement to being a Complex Contract Agreement.
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- It can stipulate Contractual Penalties (e.g. for breach of contract).
- It can specify the Dispute Jurisdiction (and so be governed by specific jurisdictional law) and Applicable Law for contract-related disputes.
- It can be instantiated in a Contract Transaction.
- It can be associated with Contract-Related Risk Items (e.g. for-profit org. contract-related risks).
- It can be associated with a Contract Type.
- It can be an Intangible Asset.
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- Commercial and Business Contracts, such as:
- Employment and Service Agreements, such as:
- Employment Contracts, such as: Job Offer Letter and Non-Compete Agreement.
- Service Agreements, such as: Consulting Agreement and Maintenance Contract.
- Consulting and Professional Services Contracts.
- Employment and Human Resources Contracts, such as: Union Contract.
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- Property and Real Estate Agreements, such as:
- Lease Agreements, such as: Residential Lease and Commercial Lease.
- Real Estate Contracts, such as: Real Estate Purchase Agreement and Office Lease Agreement.
- Construction Contracts, such as: General Contractor Agreement.
- Real-Estate Temporary Use Agreements, such as: Vacation Rental Agreement.
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- Intellectual Property and Technology Agreements, such as:
- Intellectual Property Contracts, such as: Licensing Agreement.
- Technology and Software Contracts, such as: Software License Agreement.
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- Financial and Investment Contracts, such as:
- Investment and Finance Contracts, such as: Shareholders' Agreement.
- Loan Agreements, such as:
- “John (Lender) agrees to loan Michael (Borrower) $500 to be repaid by March 30, 2023 without interest. The Lender can terminate and demand full repayment with 30 days notice. The Borrower agrees to indemnify the Lender for any costs incurred in collecting on a defaulted loan. Both parties shall indemnify each other in relation to a breach of this agreement."
- Historical Landmark Contracts, such as:
- The Carbolic Smoke Ball Contract (1892), where the Carbolic Smoke Ball Company's advertisement was deemed a legally binding offer, leading to the famous case Carlill v Carbolic Smoke Ball Co..
- The Standard Oil Trust Agreement (1882), which consolidated numerous oil companies under one trust entity and was later deemed an illegal monopoly.
- The Apple and Microsoft Agreement (1997), where Microsoft invested $150 million into Apple in exchange for a software development partnership, helping Apple survive financially during a critical period.
- The De Beers Diamond Monopoly Contracts (Late 19th Century), where De Beers secured contracts with diamond producers, allowing them to control global diamond supply and pricing, creating a near diamond industry monopoly.
- The HarperCollins Publishing Contract with J.R.R. Tolkien (1937), where HarperCollins secured the publishing rights for The Hobbit and later The Lord of the Rings, establishing J.R.R. Tolkien's legacy in the fantasy literature genre.
- The Concorde Aircraft Agreement (1962), a joint agreement between the British and French governments to develop the Concorde supersonic passenger airliner, structured as a treaty to prevent unilateral cancellation by either party.
- The Red Bull Sponsorship Agreement with Formula 1 (2005), where Red Bull entered into sponsorship and ownership contracts with Formula 1 teams, establishing Red Bull Racing as a dominant force in motorsports.
- The Nike Endorsement Contract with Michael Jordan (1984), where Nike signed Michael Jordan to a landmark endorsement deal, leading to the creation of the Air Jordan brand and revolutionizing sports marketing.
- The East India Company Charter (1600), where the British East India Company was granted a Royal Charter by Queen Elizabeth I, giving it a trade monopoly with the East Indies and laying the foundation for British colonial expansion.
- The Alibaba Investment Agreement with SoftBank (2000), where SoftBank invested $20 million in Alibaba, resulting in a major stake in the company and one of the most profitable tech investments in history.
- The Pablo Picasso Contract with Daniel-Henry Kahnweiler (1912), where art dealer Daniel-Henry Kahnweiler became the exclusive seller of Pablo Picasso's work, significantly boosting Picasso’s presence in the art market.
- The McDonald's Franchise Agreement (1955), where Ray Kroc signed the first franchise agreement with the McDonald’s brothers, establishing the franchise model that would drive McDonald's global expansion.
- Ancient Contracts, such as one within The Nuzi Tablets (~1,400BC).
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- It can (typically) include Legally-Foundational Elements, such as:
- Counter-Example(s):
- a Promisory Estoppel.
- a Quasi-Contract.
- a Treaty, such as the Treaty of Versailles between nations.
- a Power of Attorney Agreement, permitting one person to act on another's behalf in legal matters.
- a Last Will and Testament, stipulating the distribution of an individual's assets after death.
- a Promissory Note Agreement, detailing a written promise to pay a definite sum of money.
- an Arbitration Agreement, committing to settle disputes through arbitration rather than court proceedings.
- a Medical Consent Form, acknowledging a person's agreement to undergo a specific medical procedure.
- See: Private Law, Law of Obligations, Business Law, Legal Relationship, Technical Document.
References
2023a
- (Open AI ChatGPT, 2023) ⇒ https://chat.openai.com
- A contractual agreement is a legal arrangement between two or more parties, known as the contracting parties, that outlines the terms and conditions under which they agree to interact with one another. This agreement is governed by contract law and is enforceable by law, provided that it fulfills specific requirements. The main elements of a valid contractual agreement include:
- . Offer: One party (the offeror) presents specific terms and conditions for an agreement.
- . Acceptance: The other party (the offeree) agrees to the terms and conditions presented by the offeror.
- . Consideration: Something of value is exchanged between the parties, such as goods, services, or a promise to perform or refrain from performing a certain action.
- . Mutual assent: Both parties genuinely and voluntarily agree to the terms and conditions of the contract, often referred to as a "meeting of the minds."
- . Capacity (Contract Law): Both parties must have the legal capacity to enter into the contract, which typically means they are of legal age and sound mind.
- . Legality (Contract Law): The contract's subject matter and terms must be legal and not contrary to public policy or any applicable laws and regulations.
- When these elements are present, a contractual agreement becomes a legally binding contract. The parties involved are obligated to fulfill their respective duties and responsibilities as outlined in the agreement. If one party breaches the contract, the non-breaching party may seek remedies under contract law, such as damages, specific performance, or contract termination.
- A contractual agreement is a legal arrangement between two or more parties, known as the contracting parties, that outlines the terms and conditions under which they agree to interact with one another. This agreement is governed by contract law and is enforceable by law, provided that it fulfills specific requirements. The main elements of a valid contractual agreement include:
2023b
- (Wikipedia, 2023b) ⇒ http://en.wikipedia.org/wiki/Category:Contract_law
- A contract is a legally-enforceable promise or set of promises made by one party to another.
A contract is a legally binding agreement concerning a bargain which is essentially commercial in its nature and involves the sale or hire of commodities such as goods, services or land.
- A contract is a legally-enforceable promise or set of promises made by one party to another.
2021a
- (Wikipedia, 2021) ⇒ https://en.wikipedia.org/wiki/Contract Retrieved:2021-12-5.
- A contract is a legally binding agreement that defines and governs the rights and duties between or among its parties. A contract is legally enforceable when it meets the requirements of applicable law. A contract typically involves the exchange of goods, services, money, or a promise of any of those. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or cancellation. In the Anglo-American common law, formation of a contract generally requires an offer, acceptance, consideration, and mutual intent to be bound. Each party must be those who are binding by the contract. Although most oral contracts are binding, some types of contracts may require formalities such as being in writing or by deed. [1] In the civil law tradition, contract law is a branch of the law of obligations. [2]
Each country recognised by private international law has its own national system of law to govern contracts. Although systems of contract law might have similarities, they may contain significant differences. Accordingly, many contracts contain a choice of law clause and a jurisdiction clause. These provisions set the laws of the country which will govern the contract, and the country or other forum in which disputes will be resolved, respectively. Failing express agreement on such matters in the contract itself, countries have rules to determine the law governing the contract and the jurisdiction for disputes. For example, European Member States apply Article 4 of the Rome I Regulation to decide the law governing the contract, and the Brussels I Regulation to decide jurisdiction.
- A contract is a legally binding agreement that defines and governs the rights and duties between or among its parties. A contract is legally enforceable when it meets the requirements of applicable law. A contract typically involves the exchange of goods, services, money, or a promise of any of those. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or cancellation. In the Anglo-American common law, formation of a contract generally requires an offer, acceptance, consideration, and mutual intent to be bound. Each party must be those who are binding by the contract. Although most oral contracts are binding, some types of contracts may require formalities such as being in writing or by deed. [1] In the civil law tradition, contract law is a branch of the law of obligations. [2]
- ↑ In England, contracts of employment must be in writing (Employment Rights Act 1996), and contracts for the sale of land, and most leases, must be completed by deed (Law of Property Act 1925).
- ↑ This category of "obligations" is essentially a fusion of contract and tort, and while cases such as Junior Books Ltd v Veitchi Co Ltd promoted this idea, it has fallen out of favour in English legal circles.
2021b
- (Wikipedia, 2021) ⇒ https://en.wikipedia.org/wiki/Glossary_of_clinical_research Retrieved:2021-12-5.
- Contract
- A written, dated, and signed agreement between two or more involved parties that sets out any arrangements on delegation and distribution of tasks and obligations and, if appropriate, on financial matters. The protocol may serve as the basis of a contract. (ICH E6).
- Contract
2014
- (Business Dictionary, 2014) ⇒ http://www.businessdictionary.com/definition/contractual-relationship.html#ixzz3WkcSDh1N
- QUOTE: Legal relationship between contracting-parties evidenced by (1) an offer, (2) acceptance of the offer, and a (3) valid (legal and valuable) consideration. Existence of a contractual relationship, however, does not necessarily mean the contract is enforceable, that it is not void (see void contract), or not voidable (see voidable contract).