Subject business studies
In this Unit will be talking about types of Contracts
Unit contracts
Unit contracts refer to contracts that are structured to define a specific unit of goods or services that will be
provided in exchange for a specific price. In other words, the terms of the contract are defined by the specific
unit or quantity of the product or service that will be provided.
For example, in a unit contract for a manufacturing company, the contract may specify the production and
delivery of a certain number of units of a product at a certain price per unit. In a unit contract for a service
provider, the contract may specify the provision of a certain number of hours or sessions of the service at a
certain price per unit.
Unit contracts are often used in industries where the products or services provided are quantifiable and
measurable, such as manufacturing, construction, and professional services. The use of unit contracts allows
for clear and specific pricing and delivery terms, which can help to minimize disputes and ensure that both
parties are clear on their obligations and expectations.
What are the Unit objectives of contract
Unit objectives of a contract refer to the specific measurable goals or outcomes that are identified in a
contract. These objectives are often tied to the performance of one or both parties and can be used to
measure the success or failure of the contract.
Unit objectives are typically defined in terms of specific, measurable, achievable, relevant, and time-bound
(SMART) criteria. This means that the objectives should be specific and clearly defined, measurable so that
progress can be tracked, achievable and realistic, relevant to the overall goals of the contract, and time-
bound so that progress can be tracked over a specific period.
For example, in a construction contract, a unit objective may be the completion of a specific phase of the
project within a certain timeframe and budget. In a software development contract, a unit objective may be
the completion of a certain number of features or functionalities within a specific timeframe.
Unit objectives help to ensure that both parties are clear on what is expected and provide a framework for
evaluating performance and ensuring that the contract is being executed in a way that aligns with the goals
and expectations of both parties.
1, What are Contracts?
Contracts are legally binding agreements between two or more parties that outline the terms and conditions
of their agreement. Contracts can cover a wide range of transactions, such as the sale of goods or services,
employment agreements, leases, and more.
A contract typically includes several key elements, such as:
, 1. Offer: The offer is a proposal made by one party to the other, outlining the terms and conditions of
the agreement.
2. Acceptance: Acceptance is the agreement by the other party to the offer.
3. Consideration: Consideration is the exchange of something of value between the parties, such as
money, goods, or services.
4. Mutual Assent: Mutual assent refers to the agreement between the parties on the terms of the
contract.
5. Competent Parties: Competent parties are parties who have the legal capacity to enter into a
contract, such as individuals who are of legal age and are not under duress or influence.
6. Legality: Legality refers to the requirement that the subject matter of the contract must be legal and
not against public policy.
Contracts can be either written or oral, but it is generally recommended to have contracts in writing to ensure
clarity and avoid potential misunderstandings. Written contracts also provide a legal record of the agreement
that can be used in case of disputes or legal action.
Overall, contracts are important legal documents that help to establish clear expectations and protect the
interests of all parties involved in a transaction.
1.2 Types of contracts
There are several types of contracts that are commonly used in different industries and transactions. Here are
some of the most common types of contracts:
7. Sales Contracts: A sales contract is an agreement between a buyer and a seller for the sale of goods
or services, which outlines the terms and conditions of the transaction, including the price, payment
terms, delivery, and warranties.
8. Employment Contracts: An employment contract is an agreement between an employer and an
employee that outlines the terms and conditions of the employment relationship, including
compensation, benefits, duties, and obligations.
9. Lease Contracts: A lease contract is an agreement between a landlord and a tenant for the rental of
real property, which outlines the terms and conditions of the lease, including rent, duration, and
responsibilities of both parties.
10. Service Contracts: A service contract is an agreement between a provider of services and a client,
which outlines the terms and conditions of the service, including the scope of work, payment terms,
and responsibilities of both parties.
11. Partnership Agreements: A partnership agreement is a contract between two or more parties who
agree to carry on a business together, which outlines the terms and conditions of the partnership,
including the distribution of profits, management of the business, and dissolution of the partnership.
12. Non-Disclosure Agreements: A non-disclosure agreement (NDA) is a contract between two or more
parties that outlines the terms and conditions of confidential information that one party may disclose
to the other, including the scope of the information, the duration of the agreement, and the
consequences of any breaches.
These are just a few examples of the types of contracts that are commonly used in business transactions.
Different industries and situations may require different types of contracts or variations of these types of
contracts to meet the specific needs of the parties involved.
1.1.1 Employment contract
