Contract Option 1: Professional Contract Formation

Option #1: Professional Contract Formation

MGT320 – The Legal and Ethical Environment of Business

Colorado State University– Global Campus

Contracts are voluntary legal agreements between two or more parties that outline each party’s rights and obligations. Oral and written contracts are both legally valid, but for business purposes (Kielmas, n.d.). The six elements of a contract are as follows: Offer, Acceptance, Consideration, Mutuality of Obligation, and Writing Requirement (Lau, T., Johnson, L. C, (2012). It is very important for a business to protect itself, and it is equally important that a business to come up with a legal binding contract in order to do so.

Contract

The type of contract I have chosen to use is a Continuing Educational Agreement, a unilateral contract. The following example contract could be used by a small business who is willing to pay for their employee’s education after a certain amount of time. The following contract would be used in my small business that is called Astuten Education.

Continuing Education Agreement

Astuten Education encourages all employees to continue education based on their industry of choice. Classes taken for expanding industry knowledge are helpful to both the company and employee. The following guidelines will be in place to help in your understanding of our company’s continued education process.

CAPACITY

This continuing education agreement is made this 9th day of January 2015, by and between

Astuten Education Address: 123 Michelle Trail

Phoenix, AZ 85023

Scott C. Ratcliff Address: 1247 Lincoln Drive

Phoenix, AZ 85023

Nature of Business. The employer & employee listed above, hereby agree they shall be considered in an agreement for the following purpose:

Continuing Education Costs Coverage after 36 months of continual employment with Astuten Education.

OFFER

If approved, Astuten Education will provide the following assistance:

CONSIDERATIONS

• 100% coverage for full-time online schooling, registration frees, course fees, book fees, and examination fees;
• Time off from work to attend examinations only;
• Half work days on examination days;
• Travel Expenses covered only to attend own graduation.
• Paid Leave will be given up to an averaged 6 hours per week for educational improvement during the school semester.

The Education Agreement will only be valid for full time employees that have worked for Astuten Education for more than 36 consecutive months. To participate in this program, the employee must attend an online university and be a full-time student. After completing a degree for professional improvement, the employee will continue to work for Astuten Education for at least 5 years after obtaining degree. The employee must also submit proof of completion once finished with degree. Should the employee drop out or withdraw from school, the employee will not be eligible for this program in the future.

I, (STUDENT NAME), have been informed regarding the policy and procedure of Astuten Education in providing training and education for its employees.

Dated: _________________

Employee: ______________________________

Supervisor: ______________________________

Vice- President: __________________________

HR Director: _____________________________

References

Kielmas, M. Why Are Contracts Important in Business? Retrieved from [http://yourbusiness.azcentral.com/contracts-important-business-5691.html]

Lau, T., Johnson, L. C. (2012). The Legal and Ethical Environment of Business