6. Contracts

The three previous chapters have described the people and organizations that make up and concern an enterprise (Chapter Three); the things it buys, makes, or uses (Chapter Four); and the activities performed by the people in it (Chapter Five). PARTY anchors the right side of our model, while ASSET TYPE and ASSET anchor the bottom. Chapter Five began the process of filling in the center by defining the ACTIVITIES and the PROCEDURES (also known as SERVICES or ACTIVITY TYPES) the company performs. This chapter continues this filling-in by discussing the organization’s relationships and transactions with the outside world.

This chapter describes the PURCHASE ORDERS and SALES ORDERS by which an organization buys and sells goods and services, ...

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