Contract Creation and Management.

A contract is formed any time two people make an agreement to do, or not to do something. Contracts can take on many forms, from a verbal agreement sealed with a handshake, to a formal complex written contract. Certain types of contracts, involving commercial transactions, must be in writing in order to be valid. The parties may only modify written contracts through written agreement. In addition, if an estimate is incorrect or the scope of work changes in a contract, the parties need to write an addendum and both parties need to sign it to modify the original agreement….(short extract)