Contract - Term Overview

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Contract is a term that names the agreement or pact, whether oral or written, between parties who accept certain obligations and rights on a given matter. The document that reflects the conditions of this agreement is also called a contract.

For example: "The Chilean player will sign the contract in the next few hours and will immediately join the team", "Tomorrow we have to go to the real estate agency to sign the contract for the renewal of the rental", "The company violated the conditions of the contract and will be fined ".

The contract, in short, is an agreement of wills that is manifested in common between two or more persons (physical or legal). Its clauses regulate the relationships between the signatories in a certain matter.

When determining the content of any type of contract, we would have to make it clear that three fundamental elements must appear in it, in a mandatory way: the data related to the subjects who sign it, the pillars of the provision and consideration that is established, and the way in which the approval is given to it by the two parties involved.

There are many types of contracts, however, among the most significant are the following:

- Private, which is carried out directly by the people who sign it.
- Public, which is authorized by public employees.
- Formal. In this case, it's the contract that, as established by the relevant legislation, has a very specific form of consent on the part of the subjects involved in it.
- Bilateral, which is the one that establishes that those who sign them assume a series of obligations from that moment.

One of the areas where the contract is most important is in the workplace, since it becomes the mechanism by which a company secures the services of a worker and this, in exchange for a salary, assumes a series of tasks.

Specifically, within this sector we find subsidized indefinite contracts, training, of a very determined duration, discontinuous fixed work, part-time work, for people with disabilities, relief work, for research staff, indefinite without any type of bonus...

All contracts give rise to legal effects, which are the enforceable obligations established in their content. If a company agrees by contract to provide a certain service and then doesn't comply, it's possible to sue that company.

Most legal systems require that contracts meet three requirements: consent (the will of the parties), the object (the things or services that can enter the field of trade) and the cause (the reason that leads to the parties to enter into the contract).

There are various kinds of invalidity that render the contract without legal effect. The annulment is a generic situation that prevents the deployment of the legal implications of the agreement and goes back to the time of its conclusion. The termination, for its part, is another judicial declaration that annuls the contract.

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