Contract of Employment: Terms of employment contract

len Alfred Ajibola - 20th October, 2022 @ 09:13 AM

Topics in Commerce

Contract of Employment: Terms of employment contract Principle of Marketing: People as a marketing mix and their importance Principle of Marketing: Positioning as a marketing mix Principle of Marketing: Packaging as a marketing mix Elements of promotion in marketing mix Principle of Marketing: Promotion as a marketing mix Principle of Marketing: Place as a marketing mix Principle of Marketing: Price as a marketing mix Principles of Marketing: The seven principles of marketing mix Factors necessary for division of labour Disadvantages of division of labour Advantages of division of labour Concept of Outbound Marketing Inbound Marketing explained Types of production in commerce Commerce: Definitions and Scopes of Commerce Differences between balance of trade and balance of payments Balance of payment deficit and balance of payment surplus Disadvantages of foreign trade Divisions of foreign trade

Academic Questions in Commerce

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In commerce, which of the following is false with regards to a commodity?

  • A. A commodity must always have a market value

  • B. Rendered services are also instances of commodities

  • C. Products applicable to commodities can be bought or sold with money

  • D. A commodity must be standardized

  • E. A commodity must be usable upon delivery

  • F. Commodities can be traded in the futures market

Whatever is being marketed must always provide value to its potential consumers.

  • A. True

  • B. False

Which of the following is not a branch of marketing?

  • A. Merchandising

  • B. Promotions

  • C. Forex

  • D. Search Media Optimization

  • E. Social Media Optimization

  • F. Copywriting

Which of the following is not a characteristics of commerce?

  • A. The only aim of commerce is to make profit

  • B. It is a discontinuous process after profit had been made

  • C. It is accompanied with challenges and uncertainties

  • D. It is 100% business and economic activity

  • E. Transaction processes are always involved in commerce

  • F. It connects the process of production and marketing

Which of the following is not a function of commerce?

  • A. Unnecessary in times of emergencies like earthquakes and wars

  • B. Facilitates mass production of goods

  • C. Influences transportation network within and outside a state

  • D. Attempts to satisfy human needs and wants

  • E. Improves the standard of living

  • F. Acts as an online business link between buyers and sellers

One of the following is a form of division of labour.

  • A. Agonistic division of labour
  • B. Antagonistic division of labour
  • C. Mutualistic division of Labour
  • D. Advanced division of labour
  • E. Solitary division of labour
  • F. Occupational division of labour

A place where people buy homogenous goods in large quantities is called _____.

  • A. Wholesaler's Market

  • B. Goods Market

  • C. Products Market

  • D. General Market

  • E. Commodity Market

  • F. Forex Market

Any activity aimed at getting people interested in a company's product or service is termed _____.

  • A. Commerce

  • B. Economics

  • C. Financial Accounting

  • D. Marketing

  • E. Production

  • F. Distribution

What is a Contract?

A contract is defined as a written or spoken agreement that legally binds the parties involved, thereby creating mutual obligations that is enforceable by law. Contract must be agreeable by all parties involved. The parties involved in a contract will include the following:

  • Between two persons

  • Between two or more persons

  • Between one or more persons with an organization

  • Between two or more organizations

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Contracts are made in various instances. These will include an agreement between the landlord and tenants, in football transfers, during an employment, at sponsorship deals, during loan collection, and so on. However, this topic will be focused on the contracts of employment, including its terms and conditions.

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What is Contract of Employment?

Contract of employment refers to a written or spoken agreement that legally binds the employer who agrees to pay salary, wages or some form of reward to another person, people or organization (termed the employee) for work done or services rendered to the employer.

The employer in contract of agreement is a person, group of people or an organization who pay salaries or wages to the employees for work done or rendered services. In this regard, a written or verbal agreement to complete the process is required by both parties.

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Understand that it is not a legal necessity to have a written contract since it can also be verbal. However, the employer is still required to give their employees a written statement which covers all the terms, conditions and agreement of employment alongside the responsibilities of both parties; that is, employer and employee respectively. With this agreement, both parties understand more clearly their respective roles to each other in the business.

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Terms of an Employment Contract

Terms of employment contract refers to the benefits, responsibilities, working conditions and penalties that an employee agrees to when they accept a job.

The terms of an employment contract may likely differ for various employers. In this regard, certain terms of employment present in one organization may become absent in another. However, there are typical terms that are present on employment contracts (or letter of employment) of most organizations. These will include the following:

  1. Job information which specifies the role, duty and responsibilities of the employee.

  2. The nature and type of employment. In this regard, the employee will be made to understand if they are to work full-time, part-time, as a contract staff or on special occasions. Insurance and tax compliance will be considered based on the type of employment.
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  3. Salary, wages and allowances of the employee. The employer may choose to pay his or her employee monthly, weekly, daily or even yearly. Also, benefits may be enjoyed by the employee. Such benefits may include: holiday vacations fully sponsored by the organization, health packages, holiday bonuses, overtime packages and so on. It is important to state that the employer must categorically state the money to be received by the employee, especially on his or her salary.

  4. Duration of employment. It stipulates the date of employment resumption, and perhaps the length through which the employment will run. As an instance, a footballer may be signed to a club for three years. Interestingly, clauses are quite common in the aforementioned instance. In some organizations, employees may be given a negotiable contract employment (contract staff) while others such as full staff enjoy unlimited contracts as long as they are within the age of service according to the organization's retirement policy.
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  5. Leave and vacation policies are usually stipulated in the contract of employment. The 'leave' may be reflected in terms of sick leave, pregnancy leave, vacation leave, festivity leave and so on. The employees are expected to be free from the organization's work during their respective leave period.

  6. Period of notice before the employees resign their job. A resigning employee who fails to let their employers know when they intend to resign their job may as well miss the various beneficial packages associated with resignation in their specific organization. This period of resignation notice may be one, two, three or even six months to one year.

  7. Termination policies are also present in contract of employment. It tells the employees those actions or omissions of theirs that can lead to their sack. When employees are sacked in an organization, that marks their contract termination.

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Amazing facts in Commerce

With Amazon Smile, you can donate 0.5 percent of your purchases to a charity of your choosing

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The brewery, Sankt Gallen in Japan, produces a beer called Un Kono Kuro from elephant's dung

North Korea and Cuba are the only countries in the world where you can't buy Coca-Cola

Amazon is an e-commerce website launched in 1995. It did not make any profit for its first seven years.

Amazon's first profit was in 2003. Its founder 'Jeff Bezos' is the richest man in the world as at 2018/2019


prepayment is somewhat an opposition to deferred payment. This is true because the concept of prepayment oversees that the buyer makes payment beforehand and must wait to enjoy whatever had been paid for after some significant time had elapse.

In short, you can think of a prepayment as 'paying in advance'. An example is when a tenant pays in advance to a landlord for an apartment yet to be used. Another example is an online payment for items yet to be received.

Deferred payment is defined as a future payment eventually made after a buyer receives goods and services without an initial payment. Think of it as the: 'buy now, pay later' type of transaction.

From the perspective of the seller, the money yet to be received after the supply of goods or services is called an accrued revenue, unrealized revenue or accrued assets.

According to the buyer, the money yet to be paid after the delivery of goods or services is called an accrued expense. For instance, a company that owes employees salary can be said to have an accrued expense.

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For an item to be considered a commodity, it must satisfy three conditions. These are:

  1. It must be standardized. In the case of agricultural commodities, they must be in their unprocessed state.

  2. It must be usable upon delivery

  3. The price of a commodity item must vary.

A commodity market can therefore be defined a place where people buy and sell homogenous goods in large quantities.

Homogeneous goods are products that essentially have the same physical characteristics (or qualities) as similar products from other brands.

It is noteworthy to state that foreign currencies, data and bandwidth have all been included as part of today's commodity markets. In this regard, a commodity market will always have it's own set of rules and regulations.

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Marketing is a broad field of study. Below are branches or divisions of marketing:

  • Advertising

  • Search Engine Optimization (SEO)

  • Merchandising

  • Branding

  • Promotions

  • Copywriting

  • Social Media Optimization (SMO)

  • Event planning

  • Customer Relationship Management (CRM)

  • Graphic Design

  • Internet Marketing

Marketing is defined as any activity or process aimed at getting people interested in a company’s product or service.

The processes utilized in marketing can take place via posters, public relations campaigns, handbills, social media, radio and television, buses, walls along the streets, the internet or just anywhere.

Below are some of the branches of marketing:

  • Advertising

  • Search Engine Optimization (SEO)

  • Merchandising

  • Branding

  • Promotions

  • Copywriting

  • Social Media Optimization (SMO)

  • Event planning

  • Customer Relationship Management (CRM)

  • Graphic Design

  • Internet Marketing

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