5. • Mutual agreement or assent the parties
create enforceable duties or obligations
that are legally binding.
Elements of Contract:-
An agreement
6. Between competent parties
Based upon the genuine assent of the
parties
Supported by consideration
Made for lawful objective
7.
8. Contracts based on formation
Contracts based on nature of
consideration
Contracts based on execution
Contracts based on validity
9.
10. Contracts based on formation can be
categorized into two groups:
Express Contract:
An express contract refers to a contract
resulting from an expression or
conversation
11. Implied contracts:
Implied contract occurs without an
expression.
Implied contract can be implied in fact
or implied in law
A true implied contract arises from a
mutual agreement that has not been
expressed in words.
12. There are two types of contracts based
on the nature of consideration:
Unilateral contract:-
Only one party makes a promise. Such a
contract can be established with just
an acceptance of an offer.
13. Bilateral contract:-
Participating parties promise each other
they will perform or refrain from
performing an act. This type of contract
is also known as a two-sided contract.
14. Contracts based on execution can
either be executed contracts or
executory contracts.
Executed contract is a contract in
which performance is already
completed.
15. Contracts based on validity can come in
five different forms valid contracts.
Valid contract is one that is legally
enforceable
Void contract is unenforceable and
imposes no obligations on the parties
involved.
16. If a contract is established under
certain physical or mental pressure, it is
called a voidable contract. Such a
contract may become a valid or void
contract in the future.
Illegal contract refers to a contract
with unlawful object, whereas an
Unenforceable contract is a contract
that has not fulfilled certain legal
formalities.
17.
18. There are different types of
partnerships, but partnerships are all
designed to balance the risks and
returns of the relationship.
Negatives of partnerships include
some loss of control and potential
returns.
19. Trust:
Don’t partner with someone you
wouldn’t trust with your personal bank
account.
Friendship:
If you’re partnering with a friend,
evaluate that person’s goals, values,
responsibilities and personal life.
If you have doubts, don’t do it.
20. Trial Run:
Do a trial run for a certain amount of
time before finalizing the partnership.
Partner, Employee or Consultant:
Don’t partner with someone because you
can’t afford to hire him or her.
21. Varied Strengths:
Bring in someone who complements
your strengths.
Balanced Responsibilities:
Identify what responsibilities each party
has and stick to them.
22. Money:
Money is always a major problem in a
business partnership. Agree in the
beginning how funding will be used and
how profits will be distributed.
Valuation/Contracts:
A formula for how much the company is
worth will be important should a partner
decide to leave.
23.
24. A general partnership is the default
Version of a partnership.
Each partner represents the
organization and has equal right to
participate in the management, decision
making and control of the business.
25. In terms of risks and returns, the
assumption is that profits are distributed
equally and liability is shared equally.
Debts or Liabilities that impact the
organization can be distributed equally.
26. A limited partnership involves one
general partner with unlimited liability
and all other partners having limited
liability.
27. Small Business Administration notes,
but this should be documented in the
partnership agreement.
Limited partners are not usually
involved in day-to-day operations of
the business.
28. A limited liability partnership gives
limited liability to every owner. This
means that each partner is protected
from financial and legal mistakes of the
other partners.
As a result, a limited liability
partnership has some elements of both
partnerships and corporations.
