Types of Contracts

What is a contract? It is ______

All legally binding contracts must contain these six elements to be enforceable by the law. They are: offer, consideration, acceptance, awareness and (choose two more).

This is ________________ .

Purpose: Governs the sale of goods or services.

Key elements: Description of goods/services, price, delivery terms.

Example scenario: A retailer orders a bulk shipment of clothing from a manufacturer.

This is ______________ .

Purpose: Specifies the terms of an employee’s employment with a company.

Key elements: Job responsibilities, salary, benefits, confidentiality clauses.

Example scenario: A tech company hires a software developer.

This is _______________ .

Purpose: Allows one party to use another’s intellectual property.

Key elements: Scope of use, royalties, limitations.

Example scenario: A software company licenses its product to a corporate client.

This is _______________ .

Purpose: Outlines the terms of a partnership between two or more entities.

Key elements: Profit sharing, management duties, dispute resolution.

Example scenario: Two entrepreneurs form a partnership to start a new café.

This is _______________ .

Purpose: To protect against losses or damages.

Key elements: Indemnification terms, liability limits.

Example scenario: A construction firm indemnifies against damages during work.

This is _____________ .

Purpose: Outlines terms for dissolving a contract.

Key elements: Termination conditions, notice requirements, final settlements.

Example scenario: A company terminates a distribution agreement with a supplier.

This is __________________ .

Purpose: To keep shared information private.

Key elements: Definition of confidential information, obligations, exclusions.

Example scenario: Employees sign to protect sensitive company data.

Here are some factors you can consider while choosing the right contract type for yourself: price and cost evaluation, complexity and type of requirements, urgency of requirements, _______, _______ (choose two more).