Monthly Archives: January 2012

A training contract is a legally enforced paperwork which is signed between a training provider and a trainee. Generally, such agreements are formulated elucidating multifaceted lineaments related to a training program and it also defines the length of time till which the contract will remain valid. Hence, a training contract which would sync with everyone’s need is always of utmost importance. Despite of the kind of tenets that is to be incorporated, a training contract has to be framed abiding by the following points.

  • Be it a training contract between student and training institute or employer and employee, one has to explicate the agreed verbal terms within the document and should ensure to delineate those in support of the prescribed laws.
  • Essentially, before presenting the document one should confirm that the names of both the parties are rightly mentioned and correctly spelled. It should also highlight the responsibilities of both the parties separately and in details.
  • Arrange each of the section defining various aspects of the training contract sequentially so that it does not create a scope of misinterpretation.
  • Refrain from making the document creative with words as clarity and specificity is much more essential while drafting an agreement document. Moreover, one must ensure that a relevant document is presented instead of paperwork with reflective thoughts.
  • Specify the penalties which any of the parties have to face on violation of the prescribed legal terms. This is an important section which any of the party can refer to in case of any future discrepancies caused by the other party involved.
  • Most importantly, the agreement should include a separate section for authorization. Both the parties and the legal attorney should put their signature in order to acknowledge the lineaments within the contract as rational and legally binding.

———-

Contract Agreements

A tenancy contract is an agreement which is formed between the property owner and the tenant. These are commonly used for real estates as well as for business purposes such as renting equipment for production. This implies that one’s property will be used for another and therefore, drawing a contract becomes necessary. This is a written contract which binds the two parties under the State Contract Law of the nation. This means, that all formulations of such contracts should be done under guidelines prescribed under law. The main objective is to ensure that all terms and conditions of occupancy are properly and legally adhered to. This is also constructed for a given period of time. Often tenancy contracts are distinguished on the basis of time frame:

  • Rolling Tenancy Period: The contract is made with no such date mentioned but with the provision provided for either party to cancel the contract, if necessary.
  • Fixed Tenancy Period: This contract is temporary in nature and is used by property holders for renting out on a yearly basis at the most.

The tenancy contract is used for goods and services as well. The contract emphasizes on the duties and functions to be provided for a certain amount of rent.

  • This contract must address all the terms and conditions for renting for the tenant. This will include details about security deposit (if any), payment options etc.
  • All additional expenses will also be borne by the tenant. In case damage done to the property, there will penalties and fines mentioned that the tenant must be liable to.
  • The tenancy contract also emphasizes the obligations to be fulfilled by the owner to the tenant in terms of the quality of the property, good or service provided as well as other promises mentioned prior to the contract drawn.

A service contract is created when the company hires a particular individual or firm for certain specific services. These are necessary for ensuring all legal formalities are followed for the proper transaction of service and payment. It is important that the service contract is created after all terms of service are clearly explained to the individual/company concerned. Likewise, all payment and other related terms should be in accordance to the satisfaction and agreement of the individual concerned. It is also important to note that such a contract is not a legal document but is a method through which all details are clearly stated for both parties concerned.

  • The service contract must state whether the required services are for long-term or short-term basis. This should contain specific information about the nature of service required.
  • The deadlines and payment details should be stated in the contract. It is necessary that there is special emphasis made on this and the likely consequences to be faced if this is not followed.
  • All changes to be made to the contract should be done prior to signatures made by both parties. Therefore, careful reading of all the terms and conditions is necessary.
  • If there are additional requirements from the service already stated, this should be mentioned as well. There should be likewise mention of compensation to be given as well.
  • The service contract should highlight the payment terms such as mode and method, after the service has been completely provided for.
  • The company must also list certain perks that are to be awarded for the services acquired besides the usual payment.
  • It is necessary that there is no misrepresentation of the service contract as this might lead to several complications in the future. Hence, try to keep the language precise and simple.

A separation contract is put forwarded when two parties decide to terminate their relationship. This contract can be drawn for both business purposes and personal reasons. The business separation contracts are constructed mainly for the purpose of dividing the business into different parts so as to enable them to be controlled separately and individually by the concerned party. There may also be certain disagreements amongst the parties concerned such as low revenue generation that lead to the formulation of such a contract. However, exact reason must be stated clearly in the contract. It is also essential that details such as ratio or percentage of division of assets and liabilities, obligations to be fulfilled even after separation etc.

  • All information regarding the parties concerned should be mentioned. In case the separation is an internal one within one company, then the persons-in-charge should be stated in the contract. The party who initiates this separation and release should also be stated in the contract.
  • The reasons for the separation contract should be mentioned in a detailed and orderly way. It is very important that the party stating the reasons should be stated alongside as well.
  • The necessary actions to be taken after separation should also be explicitly stated. This will include terms and conditions that all parties will agree to so as to ensure that the contract is followed through.
  • There must also be a separate clause included in the contract which mentions any legal action to be taken in case there is any discrepancy in following the given terms and conditions.
  • There maybe certain obligations to be followed even after separation. Such duties must be mentioned clearly in the contract.
  • This type of contract should be created through the consultation of a lawyer. This will ensure unbiased formulation of the contract.

A sales contract is a legal written document that records the exchange of goods and services made between the vendor and buyer. This contract records the business transaction between the two parties. This contains terms and conditions that have been mutually agreed upon by the vendor and buyer. This must be constructed with careful planning and it is preferable to consult an attorney for the documentation of such a contract. The contract makes promise of payment that will be made within the stated period of time. The sales contract should also have the required details about the item or service for which this has been created.

Sales contract is generally used by car dealers, traders etc who cannot rely on verbal promises for purchasing or sales. Therefore, it is essential that all following key features of the transaction are to be mentioned clearly.

  • Every sales contract must have the necessary contact information of the two parties involved. This should include the legal names of companies or persons for both vendor and buyer.
  • The terms and conditions of sales should be properly stated in the contract. This will include the purchase agreement for the buyer and the terms of sales. The supply and payment terms are the most important part of the contract and must be very clearly mentioned.
  • There must be legal clauses mentioned in the contract which will elaborate on the actions to be taken if either party fails to follow through with the contract.
  • It is also essential that the contract is formulated in the simplest manner. There should be no confusion while trying to interpret the sales contract.
  • It is important that this contract is preserved for future reference. There may be certain legal necessities that need to be fulfilled even after the transaction has been completed.