Contracts or Agreements / Kontrakte of Ooreenkomste
Why would you need a contract or enter into a written agreement.
A contract or agreement exists where two or more parties make mutual promises to each other to take some sort of action or to make some payment to each other. Contracts require two parties to agree to the same thing. If they do not, there is no legal contract.
An exchange of goods for money is the simplest form of an agreement.
A simple promise by John to Peter, however, is not an agreement, because Peter has given no 'consideration' to John's promise. In order to turn John's promise into an enforceable agreement Peter must also make some promise or payment in return
It is not only strongly recommended that you have a contract drawn up by your attorney in all your personal affairs, but it is good to apply this rule in all your dealings, especially in your business affairs.
Oral Contracts.
Contrary to popular belief, contracts do not always have to be in writing to be legally enforceable. Verbal agreements can constitute legally binding contracts in many situations. The problem with verbal contracts is how to convince a court that one really existed and what the terms were. For this reason, you should try to always get your agreements in writing.
Example of a simple contract
THIS AGREEMENT is made the [Enter Day] day of [Enter Month] year [Enter Year]BETWEEN:
[Enter Name of the First Party] of [Enter Address of the First Party] (the “First Party”); and
[Enter Name of the Second Party] of [Enter Address of the Second Party] (the “Second Party”).
NOW IT IS HEREBY AGREED as follows:
1. That in consideration of the mutual covenants and agreements to be kept and performed on the part of said parties hereto, respectively as herein stated, the First Party hereby agrees that it shall
[Enter Terms of Agreement of First Party]
2. And the Second Party hereby agrees that it shall:
[Enter Terms of Agreement of Second Party]
3. Other terms to observed by and between the parties:
[Enter Mutual Terms of Agreement]
4. This agreement shall be binding upon the parties, their successors and assigns. This is the entire agreement.
5. Nothing in this Agreement is intended to confer any benefit on a third party whether under the Contracts (Rights of Third Parties) Act or otherwise.
IN WITNESS OF WHICH the parties have executed this agreement the day and year first above written
____________________________
Signed by or on behalf of the First Party
____________________________
in the presence of (witness)
____________________________
Signed by or on behalf of the Second Party
____________________________
in the presence of (witness)