Question

Agreements are an integral part of the business. Every business will have several Types of agreements in place for the smooth functioning of the organization and processes. Agreements are also known as contracts in which there are two or more parties involved and they both are bound by agreement enforced by law.

Pleasе, write examples of the 5 most used contracts in the business (in your opinion) and write a little bit about them.

Answer 1

Answer- Every business organization is bound to have some confidentiality while running a business. A number of contact are being made between two organizations or between an organization and an individual, etc to run the business smoothly and to fulfill the promises done by two or more parties at that time.

5 most used contracts in a business are-

1. Licensing Contract- When a business organization allows someone else to use the product invented or created by him for the purpose of business or commercial profits, then it generally signs the Licensing contract with that individual or organization. This contract carries the terms and conditions like not to reproduce that product, copyrights, limits of use, etc.

2. Promissory Note- It is a legal type of IOU. When anyone takes any kind of borrowing form any organization then it gets a promissory note signed by that individual or organization which states the payment to be done by the borrower at a specified or promised date and interest paid there on. It also mentions the penalties if the payment is not done on time.

3. Bill of Sale- It is a legally enforceable agreement between two entities that states who owns the property or piece of property, what the property is, how much is the cost of that property and who sold it.

4. Service Contracts- Service contracts are the contracts signed bu the organizations for the services to be delivered to the customers for the products sold by that organization. Like- Installation and services due for an R.O. sold by a water purifier company.

5. Leasing Contracts- Leasing contracts are the contracts signed between two entities, the landlord and one who takes it on lease. It is completely enforceable by law and mentions the leasing are, rent to be paid by leasee, the time period for which the leasee can use that space and other terms as per the requirements.