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Simple English definitions for legal terms
grubstaking contract
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A quick definition of grubstaking contract:
A grubstaking contract is an agreement between two or more people that creates obligations that can be enforced by law. It is a written document that sets out the terms of the agreement. A contract can refer to the series of actions taken by the parties, the physical document itself, or the legal obligations resulting from the agreement. In simple terms, a contract is a promise that the law recognizes and can provide a remedy for if broken.
A more thorough explanation:
A grubstaking contract is a type of contract that creates obligations between two or more parties that are enforceable by law. It is also known as a grubstake contract.
For example, a mining company may enter into a grubstaking contract with an investor. The investor provides the funds for the mining company to explore and develop a mine, and in return, the investor receives a share of the profits from the mine.
The grubstaking contract sets out the terms and conditions of the agreement, including the amount of funding provided by the investor, the percentage of profits to be received, and the duration of the agreement. It is a legally binding document that outlines the rights and responsibilities of each party.
Overall, a grubstaking contract is a way for investors to provide funding for a project in exchange for a share of the profits, while also protecting their investment through a legally binding agreement.