Contracts in Contractpedia can be related either to expenses or income. There are 5 types of contracts: Standard, No binding, Leasing, Cash purchase and Print. The examples given below assume that the contracts are related to expenses.
Description: This is a contract with fixed terms and conditions. It could either expire on a fixed date or be active until it is terminated. There is usually a termination notice and the period of binding is also set in the contract. A standard contract can also auto-renew if not terminated by a certain date.
Example: Contract for facility management.
No binding contract
Description: In this contract type there is no binding period and the contract can be terminated with a notice that is set in the contract terms. The contract does not have an end date but is active until terminated.
Example: Software subscription billed monthly.
Description: This is a contract for the lease of an asset or property. It is normally made between a lessor and a lessee. The contract states lease term, periods and fees as well as other terms and conditions of the leasing contract.
Example: Leasing a car.
Cash purchase contract
Description: This is a contract for documenting a one-time purchase of something. Normally a cash purchase contract is related to an asset that is expensive and valuable.
Example: Designer office chair.
Description: A contract for copying and printing. For instance, a fixed click price can be set in the contract terms together with a fixed volume. Such a contract could either expire on a fixed date or be active until it is terminated. There is usually a termination notice and the period of binding is also set in the contract. Auto-renewal is also set in the terms and conditions.
Example: Contract with a copy and print supplier.
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