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Just like an employment contract where the employee and the employer enter into an agreement, a Company Contract is a legal document that binds the company and its employees. Most corporate companies enter into an agreement with their employees after they hire them before they start working for the company, This document is important for the legal purposes because the contract will protect the rights of both the employees and the company legally. This article will discuss the key elements of the Company Contract.
How Do You Write a Simple Business Contract?
The first thing will be to identify the parties involved just like in other contracts. It is important that the Company Contract identifies the parties going into an agreement. In case the contract is between the employee and the company, you will indicate the employee’s full names and contact information then the company name and address. For record purposes, the contract can be signed by the head of the human resource department who will assume the legal role of the company’s representative. So the contract should indicate their full names and contact information. Do not forget to indicate that the named person will be representing the company and so they enter into an agreement being representative of the company. So in case, they stop working for the company they will be no longer responsible for the contract. With the termination or resignation of the person in question, all agreements belonging to him automatically terminate and have no legal value.
Free Sample Company Contract Templates
These are previews and download links for professional and comprehensive Company Contract Templates.
What are the Essential Elements of a Contract?
Another key element of a Company Contract is the contract terms and conditions. The contract should indicate the terms of the agreement and the conditions for the contract termination. For example, the Company Contract should outline the payment terms, dates, amount, and the mode of payment. The contract terms and conditions are what protect the rights of the parties involved as well as their interests. So that the company cannot scam the employee for their payments after work or the employee cannot claim payments for work they have not done. The Company Contract should also outline the contract term like how long the parties will be into the contract and if they can renew the contract after the end of the term.
The Company Contract should also indicate each party’s competence. The contract should state that each party was of sober and sound mind at the time of signing the contract because the contract can be termed as invalid if one of the parties involved was under the influence of drugs or if he was mentally incompetent at the time of the contract signing. The contract can also be termed null and void if one party was aware of the other party’s mental incompetence and they still went into an agreement with them. This is termed as illegal and is not acceptable by law to enter into an agreement when one party is not mentally fit. Lastly, the Company Contract should outline its legal purpose that is to indicate the procedures to handle illegal instances. For example, if the company requires the employee to handle stolen property knowingly, the contract should protect the employee from such circumstances.