Elements of a Business Contract
If you are an individual or small business offering goods or services to a client or company, then you will want to have a contract in place. You do not want to simply have a verbal agreement to do something. When this happens, one party always ends up forgetting their responsibilities or even refusing to pay for the job. With a verbal agreement, there are limited ways to enforce it, so things often end up going awry.
A business contract is done in writing and outlines what is expected of all parties involved. If you, for example, agree to build a shop for someone and you expect $20,000 in return, then the business contract should outline that, as well as any payment schedules and other expectations and elements. Because everything is written out, everyone should be on the same page as to what they an everyone else involved are doing to aid in the completion of the job. This makes it easier to enforce the contract. If any party fails to uphold their end of the contract, you can file a lawsuit against them and attempt to recover compensation in court.
What should you include in your business contract to make sure it is legally enforceable? Read to discover the most important elements.
What to Include
The first part of the business contract is the offer. The individual or business will offer goods or services to a client and the specifics will be outlined in the contract. If the client accepts the terms, then this is called the acceptance. The client will sign the contract.
Capacity and undue influence are two other important elements of a business contract. What these mean is that the person who is performing the services must be physically and mentally capable of doing so. They must be of legal age (cannot be a minor) and have entered the contract willfully (without any coercion or force). You could not, for example, threaten a person to buy your products, as this would make your contract illegal and invalid.
The elements of intention, form and legality are also important if you want the business contract to be valid in a court of law. Without these elements involved, the court will generally refuse to acknowledge the contract. This means that you must often include certain statements and formalities to make the contract legally binding. An attorney who specializes in business law can help you with this.
Learn More About Business Contracts
Business contracts are legal documents and therefore must contain proper language as well as terms that can be enforced by the court. If you are offering your services to a client, you need to make sure your business contract accomplished your desires while protecting your rights.
Before you create a business contract, get it reviewed by Orlando business contracts lawyer B.F. Godfrey from Godfrey Legal. He can provide helpful advice and make sure you avoid costly mistakes. Call (407) 890-0023 or fill out the online form or for a consultation.