Do you have a CONTRACT?

When starting your own business or if you already have your own business, at some point, you may need to do business with others. How do you get that going? The first step is always a good contract. A good and well-written contract allows for everyone to be on the "same page." It gives a clear understanding of what's expected and what's not expected. Also, it lets you know upfront what happens when you don't honor the contract or if you "breach" the contract.  Here are some contract basics for you to ponder. 

First, what is contract law? Contract law is a body of law that governs the creation, interpretation, and enforcement of agreements between two or more parties. Now, keep in mind that every contract needs the basics such as:

Offer and Acceptance: A contract is formed when one party makes an offer to do something in exchange for something of value from another party, and the other party accepts the offer.
 
Consideration: For a contract to be legally binding, there must be a bargained-for exchange of something of value between the parties. This is known as consideration.
 
Mutual Assent: Both parties must agree to the terms of the contract. If one party is forced into the agreement or if there is a mistake or fraud involved, then the contract may be voidable.
 
Capacity: To enter into a contract, parties must have the capacity to do so. This means they must be of legal age, sound mind, and not under duress or undue influence.
 
Legality: The subject matter of the contract must be legal. A contract cannot be formed for an illegal purpose.
 
Performance: The parties must fulfill their obligations under the contract. If one party fails to perform, the other party may have a right to terminate the contract and seek damages.
 
Remedies: If a party breaches the contract, the non-breaching party may seek legal remedies such as damages or specific performance (where the court orders the breaching party to perform their obligations under the contract).
 
These are some of the basics of contract law, but there are many more specific rules and principles that can apply depending on the type of contract and the circumstances of the case. For more information on contracts, or you need assistance drafting or negotiating a contract, feel free to contact us.