Developing a contract so that all parties involved could be aware of their obligations and meet them accordingly is one of the vital tasks for an organization. Charles Schwab, an organization offering banking and brokerage services, has developed a contract for its users to sign so that both parties could meet the respective requirements (Reder et al., 2021). For their collaboration. Since the contract in question contains the essential components of a legal agreement, it can be considered viable.
Starting with the key definitions of the foundational concepts on which the agreement is based, Schwab’s contract establishes the offer, acceptance, and legality terms from the start exceptionally clearly. The specified clarity and transparency benefit the company and its customers, promoting immediate trust and cooperation (Templin, 2017). Remarkably, Schwab also provides a robust basis for the consideration element of the agreement. Namely, the contract outlines the legal issues associated with the disbursement process, as well as the associated trading concerns (“Schwab account agreement,” 2022). Outlining that Schwab is not responsible for tracking the trading process, the contract sets the key responsibilities and relations between the parties completely clearly.
Incorporating the primary components of a legal contract, the brokerage agreement created by Schwab offers its customers a chance to familiarize themselves closely with the services that they will obtain and the responsibilities that they have. Similarly, the contract outlines the crucial responsibilities of Schwab, thus, creating a basis for cooperation and the successful delivery of the end product to the customer. Overall, Schwab’s approach to contract development can be considered a prime example of how a contract should be structured due to the close focus on key issues and the clear delineation of all parties’ roles and rights.