C. Making a business contract

C. Making a business contract

You will probably have to draw up and sign many contracts as part of your company's daily business transactions. Some of the most common business contracts include: 

• sale and purchase agreements for premises;

• lease/tenancy agreements for premises;

• hire-purchase or lease agreements for equipment;

• employment contracts;

• insurance contracts;

• sales contracts with customers;

• procurement contracts with suppliers;

• financing contracts (including loan agreements, mortgages and guarantees).

A contract can be made orally or in writing. In practice, many consumer contracts are made orally (see the Consumer Complaints topic), but some contracts are required by law to be made in writing. Examples of such contracts include cheques, insurance policies, the transfer of shares of registered companies, hire-purchase agreements, leases and agreements for the sale and purchase of real estate.

For business transactions, it is always preferable that contracts are entered into in written form. If the contract involves a substantial amount of money, you should consult a lawyer before signing.