Contracts in Commerce

Contracts in commerce are formal agreements between parties that outline the terms of their business transactions. These documents specify what each party is expected to do, such as delivering goods or services, and include details like payment terms and deadlines. Contracts ensure that all parties understand their rights and obligations, providing legal protection in case of disputes. They can be written or verbal, but written contracts are generally preferred for clarity and enforceability. Essentially, a contract serves as a safeguard for both parties, fostering trust and accountability in business relationships.