Contracts are important documents which are enforceable under law and are meant to bind two or more involved parties into certain rules and obligations which are in effect for a specified period of time. Contracts are of various kinds and each is important at a certain level and in some or the other way. Even oral contracts are important in their own right.
Most of the business and commercial transactions and deals are made on the basis of written contracts. These contracts are of extreme importance since they are used to safeguard the involved parties against any damage or misconduct by the unwanted methods. Contracts are used to lay down the basic responsibilities and duties. The parties involved are obliged to fulfil their respective roles or else immediate termination of the contract can take place.
Contracts can be formed even among different countries. Such contracts are obviously wide scaled and thus their importance is increased manifolds. The fact that the violation of the terms of the contracts can lead to legal implications makes them much more serious.
In the case of employment contracts, both the employer and the employee have their duties defined through the contract and are limited to a certain boundary which they cannot overstep in any condition. Contracts make it possible for an individual to perform his share of expected covenants. If there wasn’t any contract, it would be impossible to monitor the time period for which the employee has a right to work at the work place.
Sometimes, having a contract framed may also help to weed out the bad apples. This means that in case a party or client is reluctant to sign a contract, clearly shows that he has his faults or incapability to hide and therefore refuses to be bound by the conditions of the contract. This particular behaviour can help companies to distance themselves from such clients.