Types and forms of contracts - Accounting financial...

Types and forms of contracts

The organization's calculations, except for settlements with the budget and extra-budgetary funds, must be carried out on the basis of concluded contracts.

According to paragraph 1 of Art. 420 of the US Civil Code contract - an agreement between two or more persons to establish, change or terminate civil rights and obligations.

Depending on the degree of awareness of third parties about the fact of the conclusion of the contract and its terms, public and private agreements are distinguished. In accordance with Art. 426 of the US Civil Code is a public contract recognized as a contract entered into by a commercial organization and establishing its responsibilities for the sale of goods, the performance of work or the provision of services that such an organization, in the nature of its activities, should exercise with respect to anyone who applies to it.

In addition, there are paid and non-refundable contracts. According to Art. 423 of the Civil Code of the United States is a contract for which a party is required to receive payment or other counter-provision for the performance of its duties, a contract under which one party undertakes to provide something to the other party without receiving payment or other counter-provision is recognized as gratuitous. The contract is supposed to be paid for, unless otherwise follows from the law, other legal acts, the content or the essence of the contract.

Business entities may enter into a preliminary contract. In accordance with Art. 429 of the US Civil Code under the preliminary contract, the parties undertake to conclude in the future an agreement on the transfer of property, works or services (the main contract) on the terms stipulated in the preliminary contract. The preliminary contract is in the form established for the main contract, and if the form of the main contract is not established, then in writing.

A contract in favor of a third party is a contract in which the parties have established that the debtor is obliged to perform the performance not to the creditor, but to the third party who has the right to demand fulfillment from the debtor in his favor specified or not specified in the contract.

In accordance with Art. 432 of the US Civil Code contract is considered concluded, if between the parties in the form required by legal acts, an agreement is reached on all material terms of the contract. It is considered essential to consider conditions on the subject of the agreement, conditions that are called in the law or other legal acts as essential or necessary for contracts of this type, as well as all those terms that an agreement must be reached upon the application of one of the parties.

The contract is concluded by sending an offer (proposal to conclude a contract) by one of the parties and its acceptance (acceptance of the offer) by the other party.

According to Art. 158 of the US Civil Code transactions are made in oral or written form (simple or notarial). Some transactions require state registration (transactions with land, other real estate, movable property of certain types).

Written form of the contract is provided by drawing up a document expressing its content and signed by the person or persons making the transaction, or by persons duly authorized by them.

The form of the contract of a specific type can be established by law, and in the absence of such a requirement is determined by agreement of the parties.

The parties may conclude a contract, which contains elements of various contracts provided for by law or other legal acts (mixed agreement). The relations of the parties under a mixed contract are applied in the relevant parts of the rule on contracts, the elements of which are contained in a mixed contract, unless otherwise provided by the agreement of the parties or the essence of the mixed contract (Article 421 of the Civil Code of the United States).

The terms of the contract are determined at the discretion of the parties, except when the content of the relevant condition is prescribed by law or other legal acts.

In cases where the contract provision is stipulated by the rule that is applied in so far as the agreement of the parties does not specify otherwise (optional rule), the parties may by its agreement exclude its application or establish a condition different from that stipulated therein. In the absence of such an agreement, the contract provision is determined by a dispositive rule.

If the condition of the contract is not determined by the parties or the dispositive rate, the relevant conditions are determined by the customs of business turnover applicable to the relations of the parties (Article 421 of the Civil Code of the United States).

Most of the contracts of a civil-law nature provide for cases of non-fulfillment, improper performance, early termination of a contract by one of the parties, damages to the other party. In addition, the agreement can specify ways to ensure that the parties fulfill their obligations.

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