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 Contract Elements, such as:
    • Foundational Contract Elements, such as:
      • Contract Offer: A clear and definitive offer to provide something (see Contract Offer and Acceptance)
      • Offer Acceptance: Indicates mutual understanding and intent to be bound (see Contract Offer and Acceptance)
      • Contractual Consideration: The legally sufficient exchange of value
      • Mutual Consent: Willingness and knowledge of terms
      • Legality of Purpose: Compliance with law and public policy
      • Legal Capacity: Authority and competency to contract
      • Contract Duration: Valid period and termination conditions
      • ...
    • Operational Contract Elements, such as:
      • Legal Entity Rights and Legal Entity Duties
      • Performance Obligations and Compliance Requirements
      • Digital Contract Components and Electronic Signature Requirements
      • ...
    • ...
  • It can follow Contract Lifecycle Processes, such as:
    • Contract Creation Stages, such as: contract drafting stage, contract review stage and contract negotiation stage
    • Contract Management Stages, such as: contract administration stage, contract performance monitoring stage and contract modification stage
    • Contract Closure Stages, such as: contract termination stage and post-contract review stage
    • ...
  • It can (often) be governed by Contract-Applicable Legal Frameworks, such as:
    • Contract-Applicable Laws (contract law, commercial law, regulatory requirements)
    • Contract-Related Procedural Mechanisms (dispute resolution, enforcement protocols)
    • Contract-Related Jurisdictional Requirements (applicable law, choice of forum)
    • Digital Contract Frameworks (smart contract protocols, blockchain governance)
    • ...
  • It can (typically) involve Contract-Related Tasks, such as: contract drafting task, contract review task, contract negotiation task, and contract compliance monitoring task
  • It can involve Contract Risk Frameworks, such as:
    • Contract-Related Risk Types, such as: contract performance risks, contract-related legal risks and contract-related financial risks
    • Contract-Related Risk Management Measures, such as: contract risk mitigation strategies, contract risk contingency plans and contract monitoring protocols
    • Digital Risk Controls, such as: cybersecurity measures, data protection protocols
    • ...
  • It can establish Contract Communication Protocols, such as contract notice requirements, contract reporting obligations and contract disclosure requirements
  • ...
  • 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, depending on the contracting party types and their legal entity status.
  • It can range from being a Pre-Signed Contract to being a Active Signed Contract to being a Inactive Signed Contract, depending on the contract lifecycle stage and contract execution status.
  • It can range from being a Valid Contractual Agreement to being an Invalid Contractual Agreement, depending on whether it meets all contract validity requirements and legal enforceability criteria.
  • It can range from being a Written Contract to being a Verbal Contract, depending on the form of agreement, documentation requirements, and evidentiary standards needed for contract enforcement.
  • It can range from being a Two-Party Contract to being a Multi-Party Contract, depending on the number of contracting parties and complexity of contractual relationships involved.
  • It can range from being a Simple Contract Agreement to being a Complex Contract Agreement, depending on the contract scope, number of contractual obligations, and intricacy of contract terms.
  • It can range from being a Privately Enforced Contract to being a Court Enforced Contract, depending on the dispute resolution mechanism and whether enforcement action requires judicial intervention or private arbitration.
  • It can range from being a Short-Term Contract to being a Medium-Term Contract to being a Long-Term Contract, depending on the contract duration and whether it involves a one-time obligation, recurring obligation, or perpetual obligation.
  • It can range from being a Single Jurisdiction Contract to being a Multi-Jurisdiction Contract, depending on the geographical scope, applicable law, and whether it involves cross-border transactions or international business relationships.
  • It can range from being a Negotiated Contract to being a Modified Standard Contract to being a Standard Form Contract, depending on the term customization level and party bargaining power.
  • ...
  • It can specify Contract Enforcement Measures, such as: contractual penalties, liquidated damages, and contract remedies.
  • It can establish Contract Governance Frameworks, such as: dispute jurisdiction, applicable law, choice of forum, and alternative dispute resolution.
  • It can be implemented through Contract Implementation Forms, such as: contract transactions, contract performance actions, and contract milestones.
  • It can be classified as Contract-Related Assets, such as: intangible assets, financial instruments, and contractual rights.
  • It can be associated with Contract-Related Risks, such as: performance risks, legal risks, and financial risks.
  • It can be categorized by Contract Classification Schemes, such as: contract types, contract structures, and contract purposes.
  • ...
• Example(s):
  • Party Structure-Related Contracts, such as:
    • Organization-to-Organization Contracts, such as:
      • The Apple and Microsoft Agreement (1997), where Microsoft invested $150 million into Apple
      • The Standard Oil Trust Agreement (1882), consolidating multiple oil companies
      • The Concorde Aircraft Agreement (1962) between British and French governments
    • Organization-to-Person Contracts, such as:
      • The Nike Endorsement Contract with Michael Jordan (1984)
      • The HarperCollins Publishing Contract with J.R.R. Tolkien (1937)
      • Employment Contracts like Job Offer Letters and Non-Compete Agreements
    • Person-to-Person Contracts, such as:
      • The Pablo Picasso Contract with Daniel-Henry Kahnweiler (1912)
      • The simple Loan Agreement between John and Michael
    • ...
  • Negotiation Level-Related Contracts, such as:
    • Fully Negotiated Contracts, such as:
      • Microsoft-Activision Negotiated Merger (2022) with full-scope term negotiations
      • Shell-BG Negotiated Agreement (2015) with comprehensive bilateral negotiations
      • NFL Players Negotiated Agreement (2020) with multi-party collective bargaining
    • Modified Standard Contracts, such as:
      • Customized Bank Loan Agreements with negotiated interest terms
      • Modified Lease Agreements with negotiated rental terms
      • Adjusted Employment Contracts with negotiated compensation terms
    • Standard Form Contracts, such as:
      • Consumer Software Licenses with fixed terms
      • Standard Insurance Policys without modifications
      • Retail Purchase Agreements with preset conditions
    • ...
  • Lifecycle Stage-Related Contracts, such as:
    • Pre-Signed Contracts, such as:
      • Standard Contract Templates awaiting customization
      • Contract Under Negotiations with ongoing term discussions
      • Completed Negotiated Drafts awaiting signature
    • Active Signed Contracts, such as:
      • Executed Standard Agreements without modification
      • Executed Negotiated Agreements with custom terms
      • Active Custom Contracts with negotiated provisions
    • Inactive Signed Contracts, such as:
      • Completed Standard Contracts
      • Completed Negotiated Agreements
      • East India Company Charter (1600)
      • Carbolic Smoke Ball Contract (1892)
    • ...
  • Documentation Form-Related Contracts, such as:
    • Written Contracts, such as:
      • Master Service Agreements
      • Real Estate Purchase Agreements
      • The De Beers Diamond Monopoly Contracts
    • Verbal Contracts, such as:
      • Traditional Marketplace Agreements
      • Simple Service Engagements
      • Ancient Oral Trading Agreements
  • Complexity-Related Contracts, such as:
    • Simple Contract Agreements, such as:
      • Basic Residential Leases
      • Standard Vacation Rental Agreements
      • Simple Consulting Agreements
    • Complex Contract Agreements, such as:
      • Multi-National Partnership Agreements
      • International Supply Chain Contracts
      • The Red Bull Sponsorship Agreement with Formula 1 (2005)
  • Number of Parties-Related Contracts, such as:
    • Two-Party Contracts, such as:
      • Basic Sales Agreements
      • McDonald's Franchise Agreement (1955) with individual franchisees
    • Multi-Party Contracts, such as:
      • Alibaba Investment Agreement with SoftBank (2000) involving multiple investors
      • Construction Contracts with multiple subcontractors
      • Union Contracts involving management, union, and workers
  • Historical Era-Related Contracts, such as:
    • Ancient Contracts:
      • Agreements recorded in The Nuzi Tablets (~1,400BC)
    • Industrial Era Contracts:
      • The Standard Oil Trust Agreement (1882)
    • Modern Era Contracts:
      • Technology and Software Contracts
      • Intellectual Property Contracts
  • Lifecycle Stage-Specific Contracts, such as:
    • Pre-Signed Contracts, such as:
      • Contract Under Negotiations with ongoing term discussions
      • Negotiated Draft Agreements awaiting signature
      • Final Negotiated Contracts pending execution
    • Active Signed Contracts, such as:
      • Executed Negotiated Agreements in force
      • Active Custom Contracts with negotiated terms
    • Inactive Signed Contracts, such as:
      • Completed Negotiated Agreements
      • Historical Custom Contracts
  • ...
• 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.

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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:
    1. . Offer: One party (the offeror) presents specific terms and conditions for an agreement.
    2. . Acceptance: The other party (the offeree) agrees to the terms and conditions presented by the offeror.
    3. . 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.
    4. . 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."
    5. . 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.
    6. . 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.

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.

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. In the civil law tradition, contract law is a branch of the law of obligations.

    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.

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).

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).

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