Most organisations will draw up legal contracts with a variety of parties including employees and third-parties before providing or receiving a service from the other contracted parties.

It is important to understand that a contract is not legally binding unless it includes the following:

• An official agreement which consists of making an offer and receiving acceptance of the specific terms within the contract.
• The intention to commence legal relations in the form of a lawful agreement.
• Consideration of any promise given in return for receiving a benefit promised by the other party. I.e. Money exchanged for goods or services.