A contract is a legally binding agreement between two or more people. Most of us don’t realize that when we accept a job offer or sign a purchase order we are actually entering into a contract of sorts. If one party presents an offer and a second party accepts that offer, you have the beginnings of a legal contract.
There are certain stipulations that do apply in order for a contract to be valid however. The parties involved must be sound of mind and aware of the obligations that they are signing on for. They must also agree to the terms set down in the wording of the contract.
A contract may be represented by a simple oral agreement or it may be formalized in written form but state laws do regulate that some contracts be prescribed. Preconditions can vary but as a rule any real estate dealings or negotiations that involve something of particular value will require that an official contract be drawn up. Getting everything in writing is often a good move whether it is required by law or not. Words that have been set down in black and white are hard to dispute.
Setbacks are common in today’s business world. Circumstances may arise that keep one of the parties to a contract from fulfilling their promise. This is what’s known as a “breach of contract” and can be alleged as material or immaterial depending on whether or not the lack of compliance has a seriously detrimental effect or if it merely causes an inconvenience for the injured party.
Contract disputes may be able to be ironed out privately, between the parties themselves or a mediator may be called in to help reconcile the differences. If these options are unsuitable the alternative may mean going to court.
The best way to avoid a bad outcome is to take advantage of the experience of a knowledgeable attorney who will know how to transcribe a proper business contract. The firm of Parker Lawyers is well acquainted with the rules of contract law. Call 303-841-9525 for consultation.