Preliminary contract - guarantee of fulfillment of obligations

The Civil Code offers so many contracts that it is easy to get confused in their variety. In addition, many entrepreneurs are inventing their contracts, which are not stipulated by the law, but also do not contradict it. Therefore, to somehow sort out this sea of paperwork, it is common to divide all obligations by types. All of them, according to their legal orientation, fall into two broad categories: basic and preliminary.

The main or final contract is when there is a need to move any material goods. It can be the transfer of goods, the provision of services, the performance of work, payment, etc. A preliminary agreement is only an agreement between the two parties to conclude a basic contract in the future. At the same time, there is no obligation to transfer any material goods.

Very often, the sides are negotiating, the details of the future deal are agreed upon. An entrepreneur can prepare to fulfill obligations, while recruiting new employees, buying expensive equipment, making loans, and the business partner at the most inopportune moment will simply take and refuse to conclude a deal. As a result, the entrepreneur suffers losses, and can not defend his rights in court, because there is no strong evidence of his own rightness.

Avoidance of such force majeors is the preliminary contract. Such an interim document is a guarantee that in the future both parties will fulfill their obligations, and otherwise compensate each other for the losses incurred. It is used in a variety of spheres. So, the preliminary contract of the contract, purchase and sale, storage, delivery, etc. can be concluded.

Many entrepreneurs do not understand the full significance of this document, so they can make serious commitments without even knowing it. The preliminary agreement obliges the parties to conclude a final agreement in the future. In this case, it is necessary to prescribe the basic conditions: the subject, terms, prices, etc. If one of the parties refuses to fulfill the obligations, the other party can apply to the court, providing, as evidence of its rightness, a preliminary contract.

Often even such a serious document can not help win the case for the simple reason that it is drawn up incorrectly. One of the contractors, even specifically, can make some mistake, then to avoid punishment and not to compensate for losses. It must be remembered that the preliminary contract is a very serious document, it must be concluded with observance of all rules, as well as the main one. It must necessarily be written down all the conditions, stand the seal of organizations, the signatures of managers, all the requisites are indicated.

The fulfillment of any obligations must be approached very seriously. Unfortunately, not all entrepreneurs understand this. To avoid dishonest counterparties, it is recommended to conclude preliminary contracts with observance of all rules of their registration. So, you can be sure that the second party will fulfill the obligations or will reimburse the losses.