contracts and 10 things I know about them

A contract is an arrangement between two or more organizations or persons that creates a legal obligation or liability. It is important to remember that work contracts come in a variety of shapes and sizes. As a result, all workers of a company may be required to sign the same form, or the employee may be required to sign a contract with an employer that is exclusive to the work arrangement. Nonetheless, an employee and boss can have an oral understanding about the type of job the employee may do, the rate of pay, and the length of time the employee may work. Thus, whether by written or verbal consent, the employee’s and employer’s acts and activities are known as an implicit work contract. The majority of employment contracts have universal components and elements such as benefits, salary, and the date that the employee started working. It is important to think about the kind of contract that is pleasant and agreeable before a person signs an employment contract. Here are the ten principles of contract that I now know:

Confidentiality Agreement

The employee confidentiality agreement is a part of a contract where the employee assures and promises never to reveal any information concerning the facts and information of how the business of the employer is carried out, secrets of the organization, plans, and procedures of a company (Hillman, 2013). A confidentiality agreement is efficient and lasts even after the employee has terminated working for the employer.

Noncompetition Agreement

The noncompetition clause ensures that the employee agrees not to be employed for a particular amount of time after they stop working for their company, or not to be involved in the same kind of business. Further, in this clause, the employee is not supposed to establish companies, which will compete, threaten the business of the employer, or importune the customers of the organization (Hillman, 2013). One significant feature of this agreement is that is limited to a particular geographic location.

Ownership Inventions

This clause pertains to employees who formulate and devise things as part of their occupation. Apparently, the employee agrees that whatever he\/she invents and discovers at work, even after termination, it will become the intervention of the employer (Hillman, 2013). Furthermore, the clause states that the employee needs to consent and cooperate with the manager in obtaining inventions patented, and maintain the information concerning the invention confidential.

Best Efforts Agreement

This clause states that the employee agrees and pledges to work and function at the best of their capacity and ability, and faithful to the employer (Varian, 2014). Additionally, the agreement states that the employee purposely promises to make propositions and commendations to the employer, which will benefit the company.

Exclusive Employment

This clause states that the employees promises that as long as they are working for the employer or company, they would not work for other people in the same kind of business. Further, the employees promise not to be a director, shareholder or provide voluntary services to a competitor company.

No Additional Compensation

The no additional compensation agreement affirms that if the employee becomes an officer, or elected of the organization, the employee is not allowed and entitled to additional benefits or compensation for doing the job (Varian, 2014).

No Authority to Contract

The No authority to contract is also referred as agency provision (Varian, 2014). Apparently, the clause affirms that the employer and employee have a working relationship, and the worker has no right to coerce or enter into a contract with an employer until the employer presents a written agreement to do so.

Termination

The termination clause states that the employee and the employer have a right to terminate the employment contract for whatever reason through giving a particular amount of notice like a one-month\u2019s notice (Varian, 2014). The termination clause also provides the employer with the right to terminate the employment contract without notice when the employees violate the terms of the contract in any way. Further, the clause states that the employer has the right to lapse a contract if an employee becomes permanently ill, physically and mentally disabled, where the employee can no longer work anymore.

Arbitration

The arbitration agreements are found in various types of contracts. In the employment contract, the two parties agree at the beginning of the agreement that when they have conflicts and disputes concerning any component of the employment contract, they will present the dispute to arbitration instead of seeking resolution or ruling through a court of law (Varian, 2014). The clause also comprises details concerning the arbitration like whether the decision of the arbitration will be necessary, and how the two parties will look for an arbitrator when such issues arise.

Choice of Law

The choice of law clause states that when the parties involved have a dispute, which results in a lawsuit, it will be administered and governed by the legislation of a given state no matter where the case is filed (Varian, 2014).

Conclusion

The above assignment highlights that contracts are an agreement between two people. Apparently, the business world is full of agreements between employers and employees. Therefore, written contracts are necessary and useful when participating in operations. The written contracts offer the involved parties with legal documents, which state the anticipations and expectations of the parties, and how conflicts will be resolved. Consequently, employment contracts symbolize a tool, which organizations employ to protect and secure their resources.

References

Hillman, R. (2013). Principles of Contract Law, 3d (Concise Hornbook Series). Retrieved on March 28, 2017, from https://books.google.co.ke/bookshl=en&lr=&id=jY7aCgAAQBAJ&oi=fnd&pg=PT20&dq=Contracts:+Ten+Things+I+now+know+about+contracts,+and+how+I+would+apply+this+to+me!&ots=rXQveB7zGx&sig=2DPQXNSXa96a16MTX2ULvyp9x0E&redir_esc=y#v=onepage&q&f=false

Varian, H. R. (2014). Beyond big data. Business Economics, retrieved on March 28, 2017, from http://link.springer.com/article/10.1057/be.2014.1