You may be purchasing a piece of property, entering into an exciting new business venture, or hiring an employee and need a contract drawn up. A contract is a specific type of agreement with elements which make it legally binding in court.
7 Required Elements of a Contract
At the start of every contract, there are at least two parties; the one who proposes an offer to the other. The proposal must include cost and delivery date if applicable.
The recipient of the offer has the right to accept, reject, or amend the proposal. Altering the offer will create a counteroffer the initiator of the original contract can accept or reject.
Accepting an offer is accepting the terms of the contract and can occur in writing, in person, or over the phone. An accepted offer becomes an agreement.
Each party must be aware they are entering into a legal relationship and that they are liable for not fulfilling their part of the agreement. It is important to have Paul J. Burkhart, an experienced business attorney review any contract to ensure it is for a legal purpose and enforceable by law.
Consideration is known as something in return and is essential for a contract to have validity. A contract offering to give something without wanting something in return would not be valid or enforceable by law.
To be deemed lawful, a contract cannot be illegal, fraudulent, damaging to someone’s property or person, immoral, or against public policy.
Section 11 of the Contract Act states that “Every person is competent to contract who is of the age of majority according to the law to which he is subject to and who is of sound mind and is not disqualified from contracting by any law to which he is subject.”
A party’s ability to enter into a contract is their legal capacity. Parties must be at least 18 years of age to enter a contract. Minors and parties with mental illness or impairment due to alcohol or drugs have the right to cancel the contract due to not understanding the contract’s terms.
Both parties must be free to consent and agree to terms for a contract to be valid. If a party’s consent to an agreement was obtained due to duress, coercion, fraud, misrepresentation, or a mistake, the party’s consent is considered involuntary, and the contract will be voided.
Contracts should typically be in writing to be enforceable.
Paul J. Burkhart
Paul J. Burkhart is an experienced business attorney who demands accountability and corporate integrity. He represents and assists individuals and corporations to ensure each contract has the required elements and will hold up in a court of law.
If you are the recipient of a contract or need to draw one up, Paul J. Burkart can help ensure it is fairly written and legally binding.
Our team assists both individuals, and business clients with all their legal needs, including business and Corporate Transactions, Business/Commercial and Civil Litigation, Real Estate, Intellectual Property, Family Law, and Estate Planning matters. We are a full-service private law firm ready to assist you with any request, large or small. Call 561-880-0155 or visit our website.
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