Highlighted Insights
Definition of a Contract:
A legally binding agreement between two or more parties, creating enforceable rights and obligations.
Essential Elements of a Valid Contract:
Offer and acceptance (clear and unconditional).
Consideration (value exchanged).
Intention to create legal relations.
Capacity (legal ability to contract).
Legality (lawful purpose).
Business Contract Essentials:
Local Purchase Orders (LPOs) safeguard transactions.
Invoices and delivery notes provide accountability.
Payments and acknowledgements formalize obligations.
Why Contracts Are Important:
Document rights and responsibilities.
Make promises enforceable in court.
Clarify payment terms and dispute resolution.
Reduce risk of disputes and preserve relationships.
Key Takeaway: A well-drafted contract protects both parties, prevents disputes, and secures business continuity.