Understanding Key Commercial Contracts

Commercial Contracts Overview

Merchant Accounting

All merchants must maintain their accounts in Castilian, including the Book Journal, General Ledger, and Inventory.

Storage Contracts (Warrants)

A storage contract involves a depositor delivering goods to a storekeeper for safekeeping. The storekeeper must maintain records of received goods. This contract is finalized upon delivery of a deposit certificate or warrant.

Labor Contracts

Definitions:

• Employer: A person or entity utilizing the intellectual or material services of one or more individuals under an employment contract.
• Worker: An individual providing intellectual or material services under the dependence or subordination of an employer, through an employment contract.
• Independent Worker: An individual whose activities do not depend on an employer.
• Enterprise: An organization with tangible and intangible resources, operating under a directive to achieve economic, social, cultural, or charitable goals, possessing a distinct legal identity.

Transportation Contracts

A transportation contract is a legally binding agreement where one party agrees to transport passengers or goods from one location to another for a specified price, via land, canals, lakes, or navigable rivers.

Insurance Contracts

An insurance contract involves an insurer agreeing to compensate for damages or pay a sum upon the occurrence of a specified event, in exchange for premium payments. It can cover various risks, provided an insurable interest exists and is not legally prohibited. The policyholder pays premiums for financial protection against potential losses.

Commission Contracts

A commission contract is a commercial agreement where one party (the commission merchant) acts on behalf of another (the principal) to perform specific tasks or transactions, receiving remuneration upon successful completion.

Commercial Agency Contracts (Mandates)

A commercial mandate is a contract where one party agrees to execute commercial acts on behalf of another. It may involve representing the principal. The mandate involves two parties:

• Principal: Responsible for the execution of trade acts.
• Agent: Obligated to conclude or perform commercial transactions on behalf of the client.

Leasing Contracts

A lease is an agreement for a predetermined period, where the lessee makes monthly payments that fully amortize the property's value. At the end of the lease, the lessee has the option to purchase the property by paying a purchase option fee.