4 Reasons for the Importance of Contracting
Corporate Secretary Service Indonesia – Contracts can be said to be written evidence. When establishing a business relationship, it is very important for every entrepreneur to create black-on-white evidence, aka a contract. If you have a contract, you can anticipate if, at any time, there are obstacles in the agency or company. However, what are the functions of a contract other than the things mentioned above? Well, here are some of the functions of the contract from Legal Agreement Service.
The contract functions as a law or statute
Article 1338 of the Civil Code explains that all legally made agreements apply as laws for their makers. This is a sign that the contract is helpful as a legal basis that regulates the parties who make it. The agreement regulates the rights and obligations of all parties bound by it, as in the example of a PT PMA establishment contract.
Therefore, if a contract exists, the parties involved will be bound by its rules or agreements. This contract regulates what can and cannot be done and what must be done by the parties bound by it. So, the parties bound by the contract cannot act as they please. And suppose one party violates it (the legal language is called default). In that case, the other party bound by the contract can demand that the violating party fulfill the contract.
The contract serves as a tool or instrument to monitor and control
Making a contract functions so that you can more easily manage and also control whether your partners have carried out what has been promised or not, or even if your partners violate the rules stated in the contract. Suppose your partner violates or does not do what is stated in the contract. In that case, you can give a warning to follow or fulfill the provisions in the contract immediately.
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Contracts serve to prevent and minimize problems in the future
By making a contract, each party can know their rights and obligations. Thus, the implementation of a business relationship can run well and smoothly. In addition, a good contract is a contract that contains sanctions for parties who do not carry out the provisions in the contract. With sanctions, it will anticipate a breach of contract. This will undoubtedly prevent and minimize unwanted problems in the future.
The contract serves as a determinant of how to resolve a problem
Making a contract by the help of Legal Agreement Service is also helpful in regulating how to solve problems that arise in an agency or company. For example, the parties can choose to solve the problem in a family way by deliberation first. If the problem is not resolved by deliberation, it can be taken to legal channels. With these provisions, each party involved will no longer be confused about how to solve problems if they occur in the future.
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