Let us learn about the contracts and quasi contracts before understanding the differences between them.ContractsIt is an agreement between more than one party. Contracts are made with lawful considerations and objects between parties.The essential elements in the contracts are as follows −Legitimate offer followed by acceptance.Agreement should not be void or illegal.Minimum two parties are required and above 18 years of age.They should create legal relationships.Should have lawful considerations.Objective of the contract should be lawful etc.Quasi contractsQuasi contracts are pseudo contracts which means technically speaking, there is no contract but resembles one.The elements of quasi contract are as follows −Though ... Read More

Express contracts and implied contracts are two categories of a contract. Express contract illustrates promises made between parties with terms and conditions made clear.Implied contracts are made between parties based on behaviours of parties. Elements of express contracts are offer and acceptance. Implied contracts don’t have any written contract. These contracts happen due to circumstances.Express contractIn these contracts parties state terms and conditions either in written form or in orally. In other words agreement offers and acceptances are communicated either in written form or verbally.ExampleA party has offered to another party to install a carpet for payment of Rs.5000/-. Here ... Read More

Let us learn about costing and cost accounting before understanding the differences between them.CostingIt is the Process of cost determination and recording. There are various types of cost classifications. Costs are mainly classified into two types namely, function and behaviour.Function (costs) is sub divided into manufacturing and non manufacturing (selling and administration). Manufacturing costs are again classified as direct costs (material, labour) and indirect costs (overheads).>Behaviour costs are sub classified into fixed costs, variable costs and semi variable costsDirect costs − Clearly identified (direct material, direct labour, commissions).Indirect costs − Overhead costs (rent, office expenses, accounting expenses).Fixed costs − Costs ... Read More

To measure the cost of a product, various cost techniques are used. Job costing is used when goods are produced against only special orders. Process costing is used to determine the cost of each process involved in product making.Job costingJob costing determines the cost of each determined job. It is the cost which is involved in specific work or jobs which are performed according to the customer’s needs.Some of the cases where job costing method is applied are as follows−Jobs are executed according to customer needs.A job requires spate treatment.Each period of work requires different work in progress.Process costingProcess costing ... Read More

Costing is important to determine the exact cost, profit margins, to detect wastage and for the cost reduction. Companies follow different techniques to determine the cost based on their products, quality and quantity they produced.Some of them are job costing and contract costing.Job costingThis method is used when the company wants to produce a specific product according to customer needs. This method involves material cost, labour costs and overheads costs.This method also determines profit or loss accumulated in each job.Contract costingContract costing is used when a company wants to produce a specific product as per the contract with the customer. ... Read More

Let us understand the concept of an illegal agreement and a void agreement, before learning about their differences.Illegal agreementAn agreement which violates any law with the nature of crime or any opposition of public policy or immoral is an illegal agreement.Every illegal agreement is unlawful but not all the unlawful agreements are illegal. These agreements are strictly prohibited by law and parties who made these agreements can be penalized.Illegal agreements are void ab initio, so agreements collateral to original agreement is void.Void agreementMeaning of the term VOID is no legal binding and term AGREEMENT is consent between two or more ... Read More

To record commitments between the companies or between the parties, contracts and agreements plays an important role. These agreements or contracts also play a role in the companies’ smooth functioning.Void agreementIn simple words, it is not enforced by law which means that the parties which are involved in agreements have no rights and can’t be challenged in courts.These agreements can’t be changed into binding agreements. To become void agreement, it must meet the essentials which are mentioned in section 10 of the act.Some of the agreements which are declared as void are as follows −Agreements with minors, lunatics etc.Agreements whose ... Read More

Let us understand the void contract and the voidable contract.Void contractVoid contract means an agreement which is not enforceable by law.This contract has no obligation/right/accrues to contract the void contract and also has no legal ability.A contract can become void contract due to the following −If a contract involves illegal activity.If a contract is against public policy.If performing the contract is impossible.If the party/parties involved in a contract are not competent legally.Nature of contractInitially, the contract is valid, but due to some reasons, it becomes invalid subsequently.In the absence of any elements in a valid contract, then the agreement becomes ... Read More

Long straddle involves call and put strategy for one particular bond, security or an asset and is utilized by traders as it has potential for maximum benefit and negligible risks. Under this method both long call and long put have the same stock price and expiration date.Important Points BrieflyAn option strategy known as a long straddle is acquiring both a long call and a long put on the same underlying asset with the same expiry date and strike price at the same time.The purpose of a long straddle is to benefit from a very big move in either direction by ... Read More

Kansas Stock Ownership Plans (KSOP) is a popular retirement plan that combines an employee’s stock ownership stock ownership plan with a 401(k) plan. The firm matches stock benefits for the employee based on their performance instead of cash. They provide double benefit for organizations and combine the offerings of ESOP and 401k retirement plans.KSOP offers dual benefits of ESOP and 401(k) retirement plans.What is KSOP?As businesses continue to evolve, they have realized the benefits of combining two different strategies and this is where KSOP has offered a significant offering to them. The retirement plans are of two types −a defined ... Read More