As a business owner, contracts are an inevitable and essential part of any professional relationship. These legal documents will protect the interests of both parties involved in any professional transaction or agreement. Contracts ensure legal remedies are met when or if one party does not carry out its end of the deal. For this reason, businesses must understand what a contract is and what makes a contract legally binding.
How to Write a Contract Agreement
It is imperative to note that legally binding contracts must include an agreement between two parties with the agreement offered by one side and all terms clearly accepted by the other. Additionally, the contract must outline the value of the goods or services traded and the value of the exchange. This sounds complex, but this could be as simple as exchanging services for money.
While coming to an agreement, there may be counteroffers or negotiations between the parties that our legal team can aid in reaching a fair and realistic conclusion. It is necessary to put these business contracts in writing to ensure transparency between parties and to create a point of reference in a physical document. Although some contracts can be legally binding if agreed upon orally, we always recommend a written record of any agreement.
Additionally, the finely printed terms and conditions can determine the nature and enforcement of the contracted relationship. The Saade Law Firm, P.A. can help you better understand the fine print and negotiate the terms to secure the most profitable relationship.
What Makes a Contract Invalid?
Not all contracts are legally binding. A contract may be invalid for the following reasons:
The contract calls for an illegal act.
The contract is issued to a minor or a person who lacks the mental capacity to decide.
The contract is agreed upon verbally when a written agreement is required.
General Requirements of a Contract
A contract begins with an offer, whether written or verbal. The offer outlines an action or exchange and a set of terms that must be agreed upon.
This offer must be accepted, which can be done either verbally or through written communication. However, if you are a business owner, you should always ensure your acceptances are handled in writing for both clarity and reference. Each party must understand what is involved in each point of acceptance.
Each party must also bring value to the agreement, also known as consideration. This may be in the form of action, promise, or inaction. Once the offer, acceptance, and considerations are in place, the parties must then mutually oblige the contract through a binding agreement.
At The Saade Law Firm, P.A., we want to ensure every business transaction happens smoothly, fairly, and is legally binding. We offer outside general legal counsel services to businesses looking for legal assistance as an alternative to an expensive in-house legal team. We also offer extensive legal advice and assistance in developing contracts, licensing agreements, and various other business transactions. The ability to work with our team of trustworthy, experienced attorneys will ensure that all your business documents and agreements are legally binding and protect all involved parties. Contact our office today for more information regarding our general legal counsel services.