Modern capitalism would not be possible without the law of contracts. Thus, in planned economies such as the former Soviet Union and pre-capitalist China, the treaty did not determine the nature of an economic transaction. This operation was first defined by the national planning authorities; Only after the pre-established provisions set out in a written contract have been established. Modern capitalism has called for new contractual regimes in Russia and China; It passed its revised Contracts Act in 1999. The simplest thing is that a treaty is a legally binding promise. This means that not all commitments or agreements create a binding contract; If all promises did, the simple definition of the previous sentence would be: “A treaty is a promise.” But again, a treaty is not just a promise: it is a legally enforceable promise. The law takes into account how contracts are entered into, by whom they are made and for what purpose they are made. For example, in many states, a bet is unenforceable, although both parties “shake” on the bet. We will discuss these issues in the next few chapters. The employer argues that the distribution of the manual is merely an expression of the company`s “philosophy” and is therefore free of possible contractual consequences. The former employee asserts that it could reasonably be read as an explicit statement of the company`s policy, which must be followed by the company in the same way as if it was expressed in an agreement signed by both employers and employees…. In the financial field, a futures contract (sometimes called futures contracts) is a standardized legal agreement to buy or sell something at a predetermined price at some point in the future between parties who are not known to each other. Traded assets are usually commodities or financial instruments.
The predetermined price for which the parties buy and sell the asset is called forward price. The time indicated in the future, i.e. the date of delivery and payment, is called the delivery date. Because it is an underlying function, a futures contract is a derivative. An agreement, which consists of a series of promises, is called the Execution Contract, which has not yet been concluded. before promises are kept. Most execution contracts are enforceable. If John enters into an agreement on the supply of wheat to Humphrey and does so, the contract is called a partially executed contract A contract in which one party has executed or partially executed, and the other party has not.
If John pays for the wheat, the contract will be fully executed. A contract fully executed by both parties is referred to as an executed contract. Fraptions are mainly used by businesses and institutions to manage interest rate risks. The buyer of the pre-payment agreement generally wants to protect himself against an increase in interest rates. Thus, the buyer of the date pays a fixed interest rate on a fictitious sum of money. Some contracts are written, some are oral; Some are explicit, some are not.