What Types of Contracts are Regulated by Contract Law?

Whenever a company moves to a new stage with a partner, plans to hire a new employee, or discusses different services, clear agreements become necessary. In business and legal relationships, a contract is the best way to protect both sides equally.

This document clearly explains the obligations, rights and responsibilities of each person, which is definitely important to avoid future misunderstandings, financial losses and legal conflicts.

Because of these practical needs, it’s clear that when making, changing or ending a contract, businesses always follow the main rules of contract law. It involves defining the legal status of both sides and creating systems to ensure contract enforcement is done correctly.

Types of contracts and their importance

Contract law regulates different types of agreements that often play an essential role in daily life and business activities. The range of these contracts is quite wide and diverse and each has its own specific features and regulatory characteristics. The most common ones are:

• Employment contract
• Service contract
• Purchase contract
• Rental contract
• Lease contract
• Loan contract
• Pre-contract agreement

For effective business operation, employment and service contracts are usually considered the most important ones and because of that, we will explain these two contracts in more detail below. But first, let’s focus on pre-contract agreements, which define the terms for the main contract between the sides that are involved.

Pre-contract agreement – the first step to successful cooperation

Strong and stable business relationships often start with a pre-contract agreement. In this document, both sides agree on clear deadlines for talks, create a plan to work together and protect private information before signing the main contract. The pre-contract agreement ensures both sides follow the agreed conditions and helps prevent wasting time and money before the final agreement can be made.

In the end, it becomes the starting point for the employment contract, which outlines the main rules for the relationship between the employer and employee.

Employment contract as a guarantee of stable cooperation

Imagine no employment contract has been signed with a new employee, so there’s no written agreement of what each side is responsible for. In this situation, the employee might ask for a bonus, while the company might demand work that wasn’t part of the job they agreed on before. To avoid such problems, one of the most common legal documents, an employment contract, can be used. It should include working hours, conditions, pay, vacation and other important details.

It’s worth noting that in Georgia, employment contracts are regulated by the Labor Code, which defines standards to protect employees’ rights. A strong and clear contract protects both the employer’s and the employee’s interests and helps create a healthy work environment.

Service contract for defining responsibilities

Together with the legal documents that are mentioned above, a service contract is also very important. It is made between the service provider and the recipient to set clear rules for the service. In this document, the rights and duties of both sides are clearly explained and by signing it, both sides commit that they will definitely follow the terms they have agreed on.

FCHAIN’s role in contract drafting and legal support for your business

After discussing the main points of contract law, it is clear that as time passes, the business world becomes more complex. In this environment, feeling legally protected is very important, especially when it comes to contract drafting. 

This is often the moment when businesses need professional legal help to make sure contracts follow Georgian laws and meet the company’s needs. Professional contract drafting services help avoid mistakes and ensure contracts are legally correct. This is exactly where FCHAIN can make a difference.

You can get professional legal support at Financial Chain Corporation, a company with an experienced team that not only prepares and reviews contracts but also helps businesses manage legal risks, improve processes and make the best legal decisions. Our service is perfect for those who value accuracy and reliability in contract enforcement and other related procedures.