No business can operate without the formation of contracts. These agreements spell out the terms and conditions of the deal between two parties. In order for the contract to be legally binding, both parties need to clearly understand and agree to the terms and conditions.

The following are types of terms and conditions that are typically included in a contract:

1. Payment Terms: This specifies how much the buyer will pay and when the payment is due. It should also detail any late payment fees that may be charged.

2. Delivery Terms: This outlines how and when the goods or services will be delivered. It may include specifics such as the shipping method, delivery location, and timeframe for delivery.

3. Warranty Terms: This specifies the warranties that the seller provides to the buyer for the goods or services. This includes details on any guarantees or promises made about the product or service, and how to handle any defects or issues that arise.

4. Liability Terms: This section clarifies who is responsible if something goes wrong. It will specify the limits of liability and any indemnification for legal costs or damages.

5. Termination Terms: This details how the contract can be terminated and what happens when it does. It will specify the circumstances under which a party can terminate the contract, notice periods required, and consequences of termination.

6. Confidentiality Terms: Confidentiality clauses protect confidential information exchanged between the parties. It will specify how information is to be kept confidential and what happens if there is a breach of confidentiality.

7. Non-Disclosure and Non-Compete Terms: These terms restrict parties from disclosing or using confidential information for competing purposes.

8. Governing Law and Jurisdiction Terms: This section specifies which law will govern the contract and which court or jurisdiction will have jurisdiction over disputes arising from the contract.

In conclusion, contracts play a vital role in business transactions. Understanding the types of terms and conditions that must be included in a contract is essential for ensuring that the agreement is legally binding and protects both parties` interests. Failure to address any of these terms may result in costly disputes and legal issues.