Business contracts are written legally enforceable documents that form an essential part of any business. These documents are made between two or more business parties when they enter an agreement on mutual consent basis.

These legal contracts serve the purpose of a reference document which can be presented as a proof in case of misconduct or breach by any of the two parties.

A business contract covers the following points:

  1. It states all the points of obligations that are expected from the other party.
  2. It sets parameters like the time duration or frame in which the conditions of the contract should be met.
  3. It establishes the cost and payment details of the business.
  4. It gives details of all the risks involved.
  5. Consent of both the parties.

Smaller businesses often conduct business which is based on unspoken understanding. But when more is at stake, it is important to have a signed contract.

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