Contents of the contract from Alan's blog

The conditions under which the agreement of the parties is reached are the content of the contract.

The essential terms of the contract are the conditions that are necessary and sufficient for the conclusion of the contract. If essential conditions are not agreed, the contract is considered not concluded. An essential condition of each contract is a condition on its subject. The essential terms of certain types of contracts are provided for by law. Also, the parties themselves may recognize any of the conditions as material. If you are looking for drafting contracts service, you can visit our website for more info.

The result of properly organized contractual activity in the organization is a competent structure of the contract, which should be applied based on the specific type of contract.

The contract must contain certain sections:

1. Details of the contract. This is the name, place and date of the conclusion of the contract.

2. Preamble. This is an introductory or introductory part, which usually sets out the fundamental provisions, incentives, and goals for creating the corresponding agreement. The names of the parties are indicated, who exactly represents the parties and on what basis they act.

3. Subject of the contract. This is a set of works, actions, obligations that characterize the essence of the transaction being concluded. The subject of the contract is briefly reflected in its title, for example, “Purchase and Sale Agreement”. The subject of the contract should be distinguished from the object. The object of the contract is the subject and material assets to be transferred, sold, etc.

4. The term of the contract, the procedure for early termination of the contract. The contract comes into force and becomes binding on the parties from the moment of its conclusion.

5. Rights and obligations of the parties. Depending on the distribution of rights and obligations between the parties, there are unilateral and bilateral agreements. In unilateral agreements, one of the parties has only rights, while the other has only obligations. In a bilateral contract, each party has rights and obligations.

6. The order of settlements of the parties. This is one of the important points of any contract. The parties independently determine the procedure for settlements depending on the type of contract being concluded.

7. Responsibility of the parties. Responsibility is determined in accordance with the current civil legislation. When concluding a contract, it is also necessary to take into account the circumstances that relieve the parties from liability - force majeure.

8. Dispute resolution (arbitration clause). For maximum convenience of the termination procedure, the so-called arbitration clause is prescribed in the contracts.

9. Final provisions. Guided by the principle of freedom of contract, in the final provisions of the contract, the parties may indicate any conditions at their discretion. Usually these are such items as: an indication of the annexes to the contract and the number of copies of the contract; an indication of powers of attorney and other documents confirming the authority of the persons who entered into the transaction and signed the contract; deciphering the concepts used in the text of the treaty.

10. Legal addresses and bank details of the parties. At the end of the agreement, the following is indicated: for organizations, the legal addresses and bank details of the parties, position, surname, name, patronymic of the person signing the agreement, the seals of the parties are affixed; for individuals: last name, first name, patronymic, passport details, place of residence, personal signature.

11. Signatures of the parties. The moment of signing the contract by authorized persons of the parties to the transaction indicates its conclusion.