Contractual Obligations
Contractual Obligations, A Business transaction does not only involve profits for the partners in the transaction but the risks involved are bond to happen. These risks may often be blamed against one other especially when there is no contractual obligation entered into between the parties. The obligations for which the parties are entitled with through the contract refers to duties which the parties are legally responsible for.
A contract hence regulates the manner through which an amount must be paid by the parties, the delivery terms, the mode of payment and limitation of liability clause. Failure of complying with any of the terms laid under the contract gives rise to breach of contract resulting in damages to be awarded to the party who has suffered losses due to the malafide act of the infringing party.
There exists no complexity in the Contract if both the parties are clear about the risks involved along with the roles and responsibilities they have been entitled with. For example, the parties enter into an agreement for sale of tangible product, an automobile. It is the responsibility of one party to transfer the ownership of the vehicle to the other party whilst the receiving party must do payment in exchange of it.
SIGNIFICANCE OF A CONTRACT
WRITTEN CONTRACT
Under the Indian law, a contract can be of written or oral. A written contract lays down the roles and duties of the parties which is in a printed document for any prudent man to read and understand what has been stated in the contract. Written contracts provide a prove that the parties have entered into an agreement and have mutually agreed for any benefits and risks involved within it. This is the reason why for any business deals and other necessary deals involved, a written contract plays a vital role as this seems to be an evidentiary value before the law and people. A written contract is best suited for a complex contract, as this would usually lead the parties to approach the court if there has been a breach of the contract by the opposite party leading to which the affected party goes may face any monetary loss or loss in the goodwill created in relation to the business being carried on.
ORAL CONTRACT
In an Oral contract, there is no printed document involved between parties as this solely depends on spoken communications which is agreed between them. Oral contracts are accepted only if it is backed by contract which is in a written document. Oral contracts hold no evidentiary value as that of a written contract unless there are witnesses, bills, emails to prove the existence of the communications made between the parties. Oral Contracts are best suited for a contract which is simple and where parties do not have to end up in court.
CONTRACTS DRAFTED BY Corporate ADVOCATES / Corporate LAWYERS
A Contract must be drafted with certainty, clarity and preciseness as a written contract is not based on any memories as that of an oral contract. Contract Advocates / Corporate Advocates / Corporate Lawyers, have expertise in respect of drafting contracts helping you to cover any risk which you may be liable for against the other party. A contract is one important document which establishes the mutual consent for the clauses set forth in the agreement.
Hence, corporate lawyers at VSK & Co Advocates & Legal Consultants, shall help you through the process of drafting an agreement, considering all the risk factors which may act against you in any business transaction.
