2.2. Third-Party Contract Management

A contract is a legally enforceable agreement between two or more parties in which all parties benefit in some way. Generally, one party makes an offer to do or provide something of value (a product or service), and the other agrees to do or provide something in return (payment). Contracts can be formal or informal, oral or written. Although an oral contract can be legally enforceable, written contracts provide more protection for the parties involved.

In a third-party contract, some part of the transaction is provided by an entity other than those who have signed the contract. There are many examples of third-party contracts in business; perhaps the best known for HR professionals is an agreement with a ...

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