Whether you should enter into a comprehensive or a monthly contract will depend on what you're trying to achieve. If you're looking for a long-term contract with unchangeable terms, a comprehensive contract may be the way to go. However, if you're looking for a short-term agreement that can be easily changed, a monthly contract may be better. Before deciding, make sure you thoroughly understand the differences between each of these options.
Comprehensive Contract Defined
Comprehensive contracts are long-term, in-depth and detail-oriented agreements. The goal in creating a comprehensive contract is to write an agreement that will satisfy both parties, and won't need to be revised or renegotiated. When writing comprehensive contracts, the parties take their time to carefully and thoroughly write out the terms they're willing to agree on. This often entails a lot of negotiating and revising before the actual contract is finished.
Monthly Contract Defined
In direct contrast to the long-term and detailed nature of comprehensive contracts are monthly contracts. Monthly contracts are meant to be short-term and frequent changes are anticipated from the start. When writing monthly contracts, much less negotiating is needed, as the terms in these contracts aren't nearly as in-depth and detail-oriented as with comprehensive contracts. Generally speaking, monthly contracts are short, sweet and to the point. They're ideal for situations where flexibility is necessary.
Examples of Comprehensive Contracts
Governments often use comprehensive contracts when they enter into agreements with other nations. One example is Sudan's comprehensive peace agreement entered into by the Sudanese government, the Sudan People's Liberation Movement and the Sudan People's Liberation Army in 2011. However, comprehensive agreements are also found throughout the business world wherever large negotiations are warranted. For example, comprehensive contracts are often used whenever mergers and acquisitions take place, or when long-term detailed agreements must be made.
Examples of Monthly Contracts
One common example of monthly contracts involves month-to-month leases. For landlords, a monthly contract may be beneficial when they don't want long-term tenants. For example, a landlord may rent a property out as a vacation home on a monthly basis. For the tenant, a monthly contract may be beneficial if he's planning on moving before a typical 12-month lease would expire. Another example includes month-to-month cell phone contracts where the customer isn't tied into a long-term commitment and has the option of canceling service at the end of each month without penalty.
- USLegal: Long-Term Contract Law & Legal Definition
- United States Institute of Peace: Peace Agreements - Sudan
- Cnet: Verizon Wireless Adds Month-to-Month Option
- Daily Herald: When to Take the Plunge - Long-Term Vs. Short-Term Contracts
- FindLaw: What is the Difference Between a Month-By-Month Lease and a Fixed-Term Lease?