We believe contracts are crucial for managing healthy and fruitful relationships between all parties. A properly written agreement is therefore advised to prevent any unfavorable outcomes. Whether you need a review, a template, a contract drafted, or a custom quote for bespoke legal contract work, we have you covered.
Our professional expertise in drawing up and tailoring any written contract offers you the convenience of:
A contract is a legally binding agreement between two or more parties, which provides details of what the parties agree to perform or exchange. Contracts are considered to be the foundation of the business world, and as such they may be simple or considerably complex. Examples of contracts include:
Contracts can be used any time the parties involved wish to document an agreement, in order to ensure that all parties’ rights are protected.
Drafting a contract refers to the act of writing the terms and details of a contract, in order to determine and outline the legal obligations of all parties to the contract. This allows them to have a clear understanding of their duties and legal obligations to one another. While a contract can be drafted by anyone, it is in the best interest of all parties involved to have an attorney draft a contract, especially if it is detailed and/or complex.
A contract will also provide sections outlining whether it may be canceled, as well as how to cancel it. The contract will clarify the consequences if a party breaches the terms of the contract; as such, a well-written contract will contain clear definitions of what constitutes a breach, so that all parties can uphold their duties.
In order for an agreement to be binding in a court of law, the contract must contain the following elements:
In general, a person needs to be of legal age in order to enter into a contract. In most states this is at least 18 years of age, and is referred to as the legal capacity to enter into a contract.
In addition to having legal capacity, a person also needs to have “competency” to form a contract, which is often referred to as either “competency” or “capacity.” When entering into a legally binding contract, certain people may lack the capacity or competency to contract. Both parties to a contract must have contractual capacity or competency in order for the agreement to be legally binding. Contractual capacity means that the parties are able to understand that a contract is being formed. The parties must also be able to understand the basic nature of the contract.
It is important to note that contractual competency and capacity have nothing to do with a person’s skill in bargaining or negotiating a contract. Just because a person does not understand every detail and provision in a contract does not mean that they lack the competence or capacity to form the contract. In short, it is enough if the person understands that they are entering into a contract, and that they understand the general nature of the contract.
Essentially, even if a person has the legal capacity (age) to enter into a contract, a court might not enforce the contract if the person lacked the legal or mental capacity to do so.
A breach of contract means that one party to the contract fails to fulfill their contractual obligations. A breach can occur if a party:
If one party fails to perform while the other party fulfills their duties under the contract, the performing party is entitled to legal remedies for breach of contract. This is further discussed later on.
Some common examples of breach include:
In a contracts claim, the term “consideration” refers to something of value that is given in exchange for the performance of the contract duties. Consideration may also be called the “bargained-for-exchange,” which is generally the price paid for the promise. This indicates that the party receiving the goods or services has given something in exchange for those benefits.
Every contract agreement must be supported by consideration. What this means is that you cannot make a contract for one person to give something to the other person, without receiving something in return. However, the consideration does not have to be of the same exact value as the goods or services that are being provided. The focus is more on the legal obligation that the consideration “triggers” for the receiving party.
