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Contracts

What Are Contracts?

April 12, 2024

What Are Contracts?

A contract is legally binding between two or more parties that are in agreement. A contract is a safe way in which all the parties promise that certain rights and obligations will be fulfilled by each member who signed the contractual agreement. To put it more easily, a contract is based on a promise that each singing member agrees to satisfy.

What is the Enforceability of a Contract?

But not any contract can be enforceable. For an agreement to be enforced by a court of law, it must meet certain criteria first:

  • Offer and acceptance – There must be a clear offer from one party, while the other party must accept the offer.
  • Capacity – Both parties must have the legal capacity to enter into a contract. This means that if we want our contract to be enforceable, we can’t be under the legal age and we can’t be under the influence of alcohol or drugs. 
  • Consideration – Both parties must receive something of value in exchange. This means that we will both benefit from this exchange. 
  • Legality – The contract shouldn’t be illegal or against legal standards. And we can’t create an agreement for something illegal. 

It’s important to note that a contract isn’t enforceable if one of the parties fails to fulfill their obligations under the contract. And if our contracts aren’t enforceable, it’s as if we never had a contract at all. 

Is there a difference between binding and enforceable contracts?

There is no difference between binding contracts and enforceable contracts. A binding contract is any contract that is enforceable. This means that once the contract we signed is enforceable, the contract becomes legally binding.

What is the Purpose of a Contract?

A contract’s goal is to establish and formalize new relationships between each agreeing party, setting clear legal obligations that each member needs to fulfill. So, a contract starts with a promise that is transformed into a legal obligation for each member who signed it.

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Although, today we have most contracts bounded between businesses, as individuals we still have to sign contracts, such as when buying a house, accepting a job offer, or selling a property. And, for a business owner, having the right contracts will keep your work safe and your mind at ease. But, if you are just starting out, this whole process of drafting the right contract can be more difficult and stressful. So, this is where business and contract management platforms intervene and save the day. 

Subject

What Are Contracts? What is the Enforceability of a Contract?Is there a difference between binding and enforceable contracts?What is the Purpose of a Contract?
Contract Wiki

Here is everything to know about contracts! We specially crafted a wiki dedicated to all your needs.

Whether you're a seasoned legal professional, a business owner, or an aspiring entrepreneur, our wiki serves as your trusted guide, offering valuable information to help you understand, create, and execute contracts with precision and integrity.

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Frequently Asked Questions

Do you have a question?

Whether you're a seasoned legal professional, a business owner, or an aspiring entrepreneur, our wiki serves as your trusted guide
01

Why do I need a contract management platform?

A contract management platform is your best friend in growing your business. It helps you save money, time, and so much stress by eliminating repetitive tasks. This is where we at DocStrat come in! 

So, now, you have access to a complete all-in-one business management platform that is your solution for every legal, administrative, customer relations, and sales task. From contracts and invoice automation to an excellent CRM system to task management and calendar, you can manage and maintain all your business in one place. 

No more chaos. No more manual work. No more time spent juggling multiple tools and systems. We want to help you do it faster and better! And that’s why we have a platform for everything you need for your business.

02

Who can use a contract management platform?

The best thing about this is that everyone can use it. Whether you’re a freelancer, a small startup, or even an enterprise, a contract management system will 100% benefit you and your business. It ensures that you can increase your productivity and achieve your goals much faster than before. Now, you can focus on what truly matters – the success of your business. 

03

Do I need a team license?

It only depends on how you want to work and how large your team or company is. You can have a solo license, a team license for five users, and even an enterprise license for more than ten users. 

If you’re a solo freelancer, you can opt for the Basic package, and if you’re a small company with just one delegated person, the Standard package might be a suitable option. However, if you’re a company with multiple teams, you might want to consider a Team or Enterprise license.

04

How do I purchase a license for my entire team?

Depending on your team’s size and needs, you can purchase a license that can be shared and used by everyone on your team: Team Licence – for teams of up to 5 users, and Enterprise license – for large teams with 10+ users.

05

Can I upgrade my license?

Yes, absolutely! Contact us, and we’ll simply deduct the amount you paid for the actual package with the price for the license you want, and you’re good to go! You can immediately use the upgraded version of the platform. 

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Whether you're a seasoned legal professional, a business owner, or an aspiring entrepreneur, our wiki serves as your trusted guide, offering valuable information to help you understand, create, and execute contracts with precision and integrity.
Contract Wiki