Sean Tissue

Importance of Contracts

contracts or Memorandum of Agreement is a form of legal agreement. A contract is an agreement between two or more entities that outline a legally binding exchange. A Memorandum of Agreement is basically a document used to explain and establish an agreement in the business world. It helps business people to communicate effectively.

Business people use different types of documents to create legal agreements. For instance, a lease/contract, purchase, and sale contract, operating agreement, purchase and sales contract, and many other types of transactions are covered under the provisions of a memorandum. These forms are generally enforceable.

Attorney Diego Ruiz Duran understands the importance of contracts and having all business agreements on paper so that it is a legitimate commitment. Duran also understands how contracts of agreements also play a significant role in the organization’s growth and development. It acts as a guide to the working of the organization. The employees of the organization are kept well informed and it helps in decision making. It is the best way to get information about the changes taking place within the company and it can act as a memo to the directors or officers of the organization.

In the Memorandum of Association, the primary participants are the members of the organization. A copy of this document is provided to the public for them to be aware of the policies and procedures that govern the association and how it works. This is also used as a record of the rules that govern the conduct of meetings, general meetings, conferences, and workshops and the decisions reached by the Board of Directors or the Executive Director in cases when there are issues concerning the interests of the organization. The most common issue covered under these contracts. It is very important to keep the minutes of such meetings as they can help the organization to decide whether a change in the direction of activities is needed or not.

There is an opportunity to add information to the contract. It can either be a new provision for the existing contracts or an entirely new provision for those contracts. The general terms of the various contracts can also be included here. The main function of the documents is to provide the information required for the organizations to make a decision. Before any decision is taken, the memorandum of association must be examined and a meeting held to review the entire document.

There are various types of documents that can be used in writing contracts and memorandums. They include operating agreements, capital agreements, employment agreements, operating manuals, and business contracts. Diego Ruiz Duran knows that these agreements must be in accordance with the statutes and regulations laid down by the governing body. All the documents created must be in the name of the company with the word corporation at the bottom of the page. All the names and addresses of all the directors of the company must be mentioned in the document.