Level 3

Behavioural Contracts

Description
A Contract is a voluntarily agreement where two or more parties agree to certain actions. The Contract makes a type of commitment, promise, pledge or obligation that something will or will not happen. The Contract is designed to have a specific purpose and the agreement can either be formal (often written) or informal which tends to be spoken (I give you my word). Some Contracts that are prepared by legal personal can be enforced by the law. 

Proposal
The proposal has to be considered reasonable, the elements have to be within the individual’s control, the requirements of the Contract have to be defined and clearly communicated. The proposal also requires the other party to make a promise of some value given in return.

Terms and Conditions
Conditions that make or break the agreement must be specified such as a minimum standard and what the consequences will be if they do not keep to the agreement. However, because a Contract can be a voluntarily agreement the Terms and Conditions can be negotiated until a settlement has been agreed. If there is no agreement then the proposal can be withdrawn. The proposal should not be withdrawn after an agreement has been reached. Failure to keep to the agreement by either side releases all the people involved from the contract.

Acceptance
Once an agreement has been reached the proposal then has to be offered for acceptance. Written Contracts should be signed to show all parties agree and then honoured by all those involved.