# The contracts
## Context 1:
MASOCIETE is contacted by EK FRANCE, which would like to rent a wood cutting machine.
ALOE VERA then prepares a rental contract detailing the terms and conditions, including:
* The location term: the contract is signed for an initial period of 12 months, renewable.
* The rent: set at €1,000 per month, including charges.
* Return conditions: the machine may be returned if both parties want to end the contract.
The signed contract is recorded as supporting documentation and stored in the related documents.
Furthermore, the customer returned the item early, and we decided to invoice them for the full period rather than on a pro rata basis.
## Context 2:
BOUYRIE ITALIA wants to hire a MASOCIETE agent for English training. MASOCIETE is preparing a service contract to clearly define the terms of their collaboration. The contract includes the following elements:
* Duration and deadlines: the contract is for a period of 6 months.
* Rates and payment terms: set at €500 per month
After validation and signature of the contract by both sides, Gaule Thierry can begin the English training.
## Implementation in Simax
Any contract signed between you and a client (e.g., rental agreement, labor agreement, integration agreement , etc.) must be entered into SIMAX.
### Rental agreement
Before creating the rental agreement, you must first activate the location module in **Settings > Plug-ins and options**.
Next, to create the rental agreement, click on **Sales > Rental > Create rental agreement.**
Simply fill in the customer's name, the start and end dates, choose the contact person and the renewal method.
In **\[Renewal]**, we must define the invoicing frequency and the renewal period.
In our case, the rental agreement may be renewable for one year and invoicing is on a monthly basis.
In **\[ Invoicing]**, we will define the item to be rented and the monthly rental amount.
In **\[Preparation]**, the |Packer|, in our case the Super Supervisor, allows you to specify that the contract is prepared. It is impossible to sign an unprepared contract.
We can see that the machine is neither rented nor reserved and that the last rental date was at the end of July.
It was recently manufactured.
Below are the details of the item.
In **\[Return]**, the customer has a choice of 3 options in the event of an early return:
* Prorated
* Full period
* Completed
In **\[Related Document]**, you can find the documents attached to the contract.
And **\[\[Save]]**.
To create the Service Agreement, click on the **Sales menu > contracts > Customer contract list**, then \[**\[New]]** and select **|Service Agreement|.**
Simply fill in the customer's name, the start and end dates, choose the contact person and the renewal method.
In **\[Invoicing]**, we choose the invoicing frequency and create the corresponding contract line.
To create the contract line, simply click on **\[\[New]]**.
In **\[Schedule]**, we create recurring training-related activities.
In **\[Related Documents]**, you can find the documents attached to the contract.
And finish by clicking **\[\[Save]].**
### Customer contract
Same principle as the Service Agreement.
### Maintenance Contract
Cf. Documentation ERP\_19\_After sales service.
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