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Before any contract is signed, you must understand the terms, requirements, and conditions of what you are signing. Signing contracts without understanding the terms and requirements can cause damage to you or your career. Therefore, it is important to understand what a contract entitles and then the specific regulations set in the contract before signing it.

 

Contracts are important for conducting business for all sizes of companies around the world. In the olden days, there were few written contracts, many business and personal deals were just a handshake. If any problem ever arises from any of these agreements, the involving parties take the issue to court or the traditional way and a judge would hear the case even if the contract was put into writing.

 

  A verbal contract is still legal (except for in specific situations), most contracts are documented in written form. Contracts have become increasingly detailed these days, and every effort is made to make all possibilities and eventualities clear for everyone’s understanding.

 

Basic Elements of a Valid Contract:-

Every contract should encompass these points to qualify as a contract;

• Offer
• Acceptance
• Consideration
• Mutual Consent

 

A contract can be said to be legally binding so long as it meets the country’s requirements stated in the labour act for a valid contract. A valid contract has the following basic elements present:-

 

Offer: The specific terms of the contract agreement.

Acceptance: The acceptance of both parties to the terms of the contract agreement.

Consideration: The ability to bargain and that an actual exchange will take place.

Mutual consent: The contract is agreed upon by both parties, meeting each other’s requirements of their own free will.

 

When to sign a contract:-

Once you agreed to sign a contract, you may not be able to get out without compensating the other party involved, hence all attention to details must be observed by:

• Read every word, including the fine print

 

• Ensure that it reflects the terms and conditions that were negotiated

 

 

• Seek legal advice

 

• Allow plenty of time to consider and understand the contract

 

 

• Don’t be pressured into signing anything if you are unsure

 

• Never leave blank spaces on a signed contract – cross them out if you have nothing to add so they cannot be altered later

 

 

• Obtain a copy of the signed contract for your records.

 

 

When not to sign a contract:-   

 

If the terms, requirements, and conditions don’t favor one party then it becomes unwise to sign such a contract. Especially, when the representation of the contract is inaccurate or the other party intentionally misrepresented your demands. Also, if there is coercion to sign. Contracts are signed when both parties are satisfied with the demands and requirements that meet the labour law of one’s country.

 

 

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