As seen above, contracts help maintain a balance two parties. It ensure contractors and clients remain true to their word, offering a replacement or repair if products or services are not as described. However, contracts are also used as mutual agreements between two parties, irrespective of a product or service.
For example, in the dog breeding community, you may be asked to sign a contract – this may be for veterinary services, the use of a stud dog, or co-operative breeding.
This contract should include all terms of agreement that all parties must agree to and act accordingly. A popular inclusion is an NDA, or Non-Disclosure Agreement.
An NDA means anyone involved in the agreement/contract must not discuss the terms with any party not involved in the agreement. This may be due to the sensitive nature of the terms or the importance of secrecy.
If a party acts outside the terms of agreement, the contract should be nulled immediately.