Contracts and Contractual Obligations

Contracts are leagally binding agreements between two parties.

Breach of contract occurs when conditions that make it legally binding are compromised

Types of Legal Contracts

Employment:

An agreement between an employer and an employee where the employee undertakes to perform certain duties and meet certain deadlines.

Insurance:

An insurance contract between the insurer and the insured, where the insurer carries the risk and the insured pays a monthly premium to transfer the risk.

Lease:

A lease agreement between a landlord and a lessee where the goods never become the property of the lessee.

Hire Purchase:

An instalment sale contract where a seller allows a buyer to pay a deposit, take possession of the goods immediately, and pay off the goods in monthly instalments.

Rental:

A contract between a landlord and a tenant where the tenant rents property from the landlord.

Franchising:

A legal contract between a franchisor and a franchisee where the franchisor provides continuous training and support, and the franchisee pays a one-time and thereafter monthly / quarterly or annual fee for the use of the business concept.