The essence of the contract is to describe a transaction or series of transactions. We usually have such contracts are drawn up in writing, although in the West people who trust each other, and time-saving, and often use the oral agreement. In this section we will discuss in mostly written contracts, bearing in mind that the general principles of compilation is equally applicable to the interpretation arrangements.
The imperfection of human communication has necessitated the creation and continuous improvement contracts and the accompanying glossary. People can misunderstand each other, even if they speak the same language and have one and the same profession. They tend to from time to time, revise or even change the details of the agreement to their advantage.
Contracts as an economic category The need for contracts, thus, arises together with the need for accurate and unambiguous terms that allow each party to the transaction accurately understand the contract. Well-written contract should also be easily understood impartial third party - the arbitration commission or the judge - in the event of a dispute between the parties to the contract.
Furthermore, the exact wording of the contract shall be deemed final, starting at a particular point in time specified all participants. In the case of a written contract in such a moment is the moment of signing the contract, unless the terms and conditions contract are not allowed further additions or changes. None of the parties are not allowed to make changes to the contract after it was signed without the consent of the other, unless such right is not contained in the contract.
These fundamental principles - clearly defined rights and responsibilities - are more than sufficient basis for the contract the right to trade in goods. They also form the basis for the rule of law in a democratic society as a whole.
Exchange transaction - a mutual agreement on the transfer of rights and responsibilities with respect to the exchange of goods, which is achieved bidders in the auction stock is registered on the Exchange in accordance with established procedure and is reflected in the exchange agreement.