Types of Contract in Business Law

Running head: REPORT 0
BUSINESS LAW
APRIL 11, 2020
STUDENT DETAILS

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Contents
Introduction.................................................................................................................... 2
Employment contract........................................................................................................ 2
Business loan contract....................................................................................................... 5
Commercial lease contract.................................................................................................. 6
Conclusion..................................................................................................................... 8
Bibliography.................................................................................................................. 9

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Introduction
The businesses every so often enter multifaceted contracts with buyers, dealers along with
different organisations. In the requirement contract, the seller makes promise to render all the
products as well as services ordered by purchaser. There is great importance of contact to enter
into the business. These direct and guide the businessperson in relation to various aspects. The
business contracts like employment, commercial lease, and business loan create opportunity to
understand terms and conditions to start business. They are also helpful to run the business
smoothly. The contracts ensure the simplicity and flexibility to run the business. However, the
court can have trouble by these contracts for the reason that they state opportunity of exploitation
or misapplication. Sometimes the court can also face challenges because of the vagueness of
these contracts. In the following parts, employment contract, business loan contract as well as
commercial lease agreement is discussed and critically examined. This essay also discusses the
key terms or clauses contained by these three contract. These below mentioned parts also discuss
issues or areas of dispute along with laws related to employment contract, commercial lease
agreement and business loan contract.
Employment contract
There are various categories of the legal contracts, which can take place during the course of
running the business. The employment contract is one of them. The employment contract is
considered as legal agreement amidst employees and business that explains different terms along
with conditions of the employment, for example benefit along with payment. Some small
companies operate without formal, written employment contracts, but a written contact can
provide more security and certainty to employers and employees than an oral agreement. The
business that hires independent contractors can enter into the contract named as work for hire

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agreement that signify category of the work to be conducted by contractor as well as contractor
pay. Further, it is very essential to know about the key clauses along with terms of employment
contract. It is essential to include the outline of the roles along with accountabilities in the
employment contract. In addition, it should also include the primary probation duration as well
as the prohibition on different paid work at the time of doing work. Further, one can also require
involving the clauses to deal privacy, post employment restraints along with rights related to the
intellectual property. It can say that the contracts always have some set terms. However, it is
required that one should be careful about the situation that can take place on the ending of terms.
Certain would also have auto-renewal requirements. It is stated by various analysts that certain
have one-way renewal, and certain have joint renewal. On the other hand, some have no
rejuvenation. In this way, this is based on what is required by employers or employees1.
It can see that in the situation of the contract end date, it is required to trigger the cautious review
of how this reintroduces. In opposition, in case of evergreen contract, meaning that it inevitably
reintroduces, just be careful about when one wishes to re-negotiate anything, it is required to do
discussion properly prior to the expiry of term. In addition, all the Australian employees would
have the common law contract related to employment (unwritten contract or written) which
specifies terms and conditions with their employer2. However, it should not render conditions
along with terms of employment, which are poorer to the National Employment Standards and
other implemented industrial methods. It is found that it is possible that it can be based on a
workplace agreement between an employer and worker’s group or awards related to industry. It
can see that there are certain terms that should not be involved in the employment contract. In
different terms, it is advisable to not to include things that are contrary to legislation or the
1 Stella Vettori,
The employment contract and the changed world of work. (CRC Press, 2016).
2 The Australian common law