All You Need to Know About Contract

All You Need to Know About Contract

Contract is a term originating from the Latin word contractus that names the agreement or pact, whether oral or written, between parties that accept certain obligations and rights on a given matter. The document that reflects the conditions of this agreement is also called the contract.

For example: “The Chilean player will sign the contract in the next few hours and will join the team immediately”, “Tomorrow we have to go to the real estate agency to sign the contract for the renewal of the lease”, “The company violated the conditions of the contract and will be fined”.

According to, the contract, in short, is an agreement of wills that is manifested in common between two or more people (individuals or legal entities). Its clauses regulate the relations between the signatories in a certain matter.

When determining the content of any type of contract, we would have to make it clear that three fundamental elements must appear in it: the data relating to the subjects who sign it, the pillars of the provision and consideration that is established, and the way in which the approval is given to it by the two parties involved.

There are many types of contracts that exist, however, among the most significant are the following:
• Private, which is made directly by the people who sign it.
• Public, which is authorized by public employees.
• Formal. In this case, it is the contract that, as established by the relevant legislation, has a very specific form of consent by the subjects involved in it.
• Bilateral, which is the one that establishes that those who sign them assume from that very moment a series of obligations.

One of the areas where the contract is most important is in the labor sphere, since it becomes the mechanism by which a company obtains the services of a worker and this, in exchange for a salary, assumes a series of tasks.

Specifically, within this sector we find subsidized indefinite contracts, training contracts, for a very specific duration, intermittent permanent work, part-time work, for people with disabilities, relief work, for research staff, indefinite without any kind of bonus…

All contracts give rise to legal effects, which are the enforceable obligations established in their content. If a company contractually promises to provide a certain service and then fails to deliver, it is possible to sue the company.

Most legal systems require that contracts meet three requirements: consent (the will of the parties), object (things or services that can enter the field of commerce) and cause (the reason that leads to the parties to enter into the contract).

There are various kinds of invalidity that render the contract without legal effect. Nullity is a generic situation that prevents the deployment of the legal consequences of the agreement and takes it back to the time of its conclusion. Rescission, on the other hand, is another judicial declaration that annuls the contract.