A large portion of the earning potential of a business involves contracts. Because of that, most businesses spend a great deal of money and time on contract processes. This is done to ensure that all contracts are clear, comprehensive, and enforceable if the need arises.
However, even contracts using complex legal jargon and standardized phrases may not be enforceable in all cases. Even with all provisions and terms included, a contract may not be enforceable in a court of law. Being sure your contract is enforceable is essential for you and those you do business with.
What Ensures a Contract Will Be Enforced?
Six items ensure a contract is enforceable. It must include legality, offer, capacity, acceptance, consideration, and awareness. If these elements aren’t included, the contract may not be legally enforceable.
First, all parties need to be aware they are entering into an agreement. This means that a contract exists and both parties are bound by it. If there is a lack of awareness, this can void a contract.
Contracts must also have an offer that the other party accepts. Receiving the offer is the first step. However, it can still be terminated or changed at that point. Counteroffers can be made to change the terms of the contract.
After an offer is made, acceptance must be made for the contract to be enforceable.
Consideration is the next factor in an enforceable contract. This means the value the parties agree on, whether that’s an object, action, or exchange of services. However, consideration doesn’t have to involve money to be valid.
Every person who signs the contract must have an understanding of what they are getting into. This precludes those under 18, without a good grasp of the language of the contract, those who are under the influence of drugs or alcohol, or those with a disorder that makes them incapable of understanding the document.
Finally, the contract must be legal in the area where it is going to be used. Local, state, and federal laws all apply to this requirement.
The Role of an Attorney
If one of the parties of the contract doesn’t meet their responsibilities as listed in the contract, this results in a breach of contract. Legal contracts are subject to mediation, arbitration, and lawsuits. Clauses can be included to determine how these breaches and disagreements are handled.
When you need legally enforceable contracts, a qualified attorney is the right person to help. Choose a lawyer at Bell & Shah who specializes in contracts to ensure you get the best results. It’s well worth the expense to be sure all your contracts can be enforced when needed.