Professional Documents
Culture Documents
Understanding contract
• Example/Situation: You attend a job interview of a
reputed company
• The company selects you, offers a job and provides
an employment agreement
• You sign the employment agreement
• What does employment agreement contain? Is it a
contract?
Cont.
• Is this a contract?
Cont.
• Not within the realm of contract law
• Social agreements are not enforceable by
contract law
• Contract law is primarily dealing with
commercial/business agreements
Non Binding Agreements
• Situation/Example: Bright Builders Ltd., a real
estate company and Best Resort Group Ltd., a
holiday destination venture, had an initial
meeting for discussion on possible collaboration
• At the end of meeting the broad areas for
possible future collaboration was mentioned in
a written agreement as building holiday resorts
on joint basis.
Cont.
• Each side signed the document.
• The title given to the document was ‘Non-
binding Memorandum of Understanding’
• Is this a contract?
• What is the relevance of non-binding
agreements in business?
Cont.
relationship