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Contracts

People have been making agreements between entities ever since there was a need for someone else to perform certain tasks. When an organization determines it needs or wants help with a task, it hires another entity. This can be an individual or a large multibillion-dollar company. When another entity is hired, there is a relationship created in the form of a contract where certain aspects of this relationship are understood. These items can be understood with a handshake or formally documented and agreed upon by the signature of both parties. This list of items can include the following:

  • Scope: "This is what I want done"
  • Start: "This is when I want you to start"
  • Duration: "This is how long I expect it to take once you start"
  • Payment: "This is how much I'm going to pay you when I am happy with your work"
  • Nonconformance: "This is what will happen if you do not perform as per the above requirements"
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