There are several important parts or elements of a business contract. These elements are included to ensure that all the contents of the treaty are legally binding. The main elements of the business contract also prevent misunderstandings that could arise if they were omitted. The essential parts of a contract of enterprise do not need to have a fixed length. Simple, handwritten and even oral agreements can be enforceable. Land contracts are very specific because they must note the buyer, the seller, the description of the property for sale as well as the sale price and the terms of the sales contract. In some cases, an agreement may be upheld in court if the defendant admits the existence of a contract under oath. In order to ensure the inclusion of the main definitions in the legally binding treaty, a better approach could be to insert in the recitals the words „as defined below“ just before the defined term, thus implicitly referring the reader to the section on definitions in the part of the contract. However, in practice, it is unlikely that a court, in interpreting the agreement, will neglect all references to terms defined in the recitals. The important definitions used throughout the tenor part of the Treaty are more appropriate in the `Definitions` section of the Treaty than in the recitals, since the recitals may not have legal effect.

This is not necessarily the approach based on the approach followed in practice, as is the case for the Association of International Petroleum Negotiator (AIPN JOA) 2012 joint operating agreement (AIPN) model. . .