Legal Aspects of Business - Contracts

Flashcards covering the concept of contracts and their importance in business.

Contract

A legal agreement enforceable by law, with specific terms between two or more parties, involving a promise to do something in return for a valuable benefit (consideration).

Employment Contract

An agreement between an employer (to provide work) and an employee (to provide labor services in exchange for wages).

Consideration

The valuable benefit exchanged in a contract.

Importance of a Contract

To create a clear legal agreement between at least two parties.

Terms of a Contract

The conditions of a contract that need to be fulfilled.

General Conditions

Conditions that are general to all forms of contract.

Specific Conditions

Conditions specific to a particular contract, such as payment conditions and penalties.