Types of Agreements Most Frequently Applied to Commercial Activities

 

A contract is an agreement of persons (two or more) on the establishment of certain civil rights and obligations, as well as their changes or termination.

A contract is a kind of transaction in which the mutual expression of the will of two or more participating persons is expressed. That is, the rejection of inheritance, the issuance of a power of attorney is considered a transaction, but not a contract, since in these cases the will of only one person is expressed.

The concept and types of contracts exist different depending on the conditions, the number of participants and other circumstances that determine the nature of agreements and transactions.

Types of contracts, depending on the time of occurrence of obligations, are distinguished as follows.

The main one - directly generates duties and rights that are associated with the performance of works, services, the movement of property and so on.

Preliminary agreement on the conclusion of the main contract in the future. It is in the form established for the main agreement, contains conditions that allow determining the subject and other conditions of the underlying transaction. It also prescribes the terms of the main agreement.

Types of contracts for the entity in favor of which the agreement is concluded.

In favor of participants - allows you to require the implementation of such an agreement only to its participants.

In favor of a third party, it establishes that the debtor is obliged to fulfill the requirements of the non-creditor and the third party indicated in the document. An example of this type of agreement may be a deposit in the name of another person.

Types of contracts on the relationship of rights and obligations of the parties.

One-sided - in it one side has only rights, and the other only duties. Example: a loan or guarantee agreement.

Mutual - rights and duties are vested in all parties. Example: agreement on purchase, sale, lease, contract, etc.

Types of contracts for retribution.

Recoverable - on which the property presentation of one of the parties involves the opposite property presentation of the other party.

Gratuitous - property granting is possible only by one party without counter delivery. For example, the contract of donation, gratuitous use.

Separate contracts can be either reimbursable, or gratuitous, for example a storage agreement or instructions.

Types of contracts by the degree of binding of their conclusion.

Free - is at the discretion of the parties.

Mandatory - is mandatory for one or both parties, as required by law. For example, a bank account agreement for a legal entity. Among the binding agreements, so-called public contracts are of particular importance . They are mandatory for commercial organizations.

Types of contracts, depending on the time of the legal relationship.

Consensual - is concluded by agreement of the parties, and rights and obligations arise at the time of concluding the agreement (in a row, buying and selling, etc.).

Real - rights and obligations under this agreement are established at the time of transfer of property (loan, storage).

Types of contracts by the number of parties involved in agreeing terms and conditions.

Mutually agreed - are established by all parties-participants.

Agreements of accession - under such agreements, the conditions are established by only one party. For example, the agreement of transportation, insurance, hire, etc.

The most common types of contracts that are most often used in the work of enterprises, firms and organizations of different types of property.

The contract of sale is concluded on the sale of property or rights.

Gifted - about the free transfer of property previously owned by the donor.

Hiring - transfer of property for use for a fee.

Leases - the provision of property for use and for extended development for a fee.

Rental - transfer to temporary use without payment.

Loans - paid or free transfer of money with subsequent settlement.

Labor - service for payment.

Contract - execution of works for a fee from the materials of the customer.

Deliveries - performance of work for a fee from the materials of the supplier.

Service - service for a fee (for example, accounting).

Insurance - dealing with the consequences of risks for a fee.