What is a Legally Binding Contract in Florida?

Many parties have contracts in Florida. A contract is a legally binding agreement between individuals or businesses where one party agrees to provide goods or perform a service in exchange for some sort of payment.

Businesses often have contracts with clients and other businesses. Law firms have them with clients. Consultants and freelancers have contracts with companies. Doctors and medical practices have them with patients. Financial advisors may have a contract called a confidentiality agreement in place.

However, contracts have to be drafted properly. While several elements contribute to creating a valid contract, the process starts when one party makes an offer and the other accepts it. Mutual assent occurs when both parties negotiate and agree upon the terms.

Another essential component of a valid contract is consideration, meaning each party must give and receive something of value. This may include goods, services, money, or a promise to act in a certain way. A simple promise without fair consideration is generally not enforceable by law.

A legally binding contract can be written or oral. Oral contracts are spoken agreements and can be enforceable in Florida, except for certain transactions such as real estate sales.

While oral contracts may hold up if one party has performed their obligations, written contracts are generally preferred because they clearly outline the terms and reduce disputes. Written agreements are also easier to enforce in court. However, for a written contract to be valid, it must clearly state the parties’ intentions and key terms.

When Would a Contract Not Be Legally Binding? 

A contract may not be legally binding in several situations, even if it appears valid on the surface. Common reasons include:

• Lack of capacity. If one or more parties do not have the legal ability to enter into a contract, the agreement may be void. Examples would be minors, people with mental incapacity, or those under the influence of drugs or alcohol.
  Lack of genuine consent. A contract must be entered into freely and voluntarily. It may be invalid if consent was affected by fraud or misrepresentation, duress, coercion, or undue influence.
• Illegal purpose. Contracts involving illegal activities, such as certain types of gambling, drug sales, or tax evasion, are void and unenforceable.
• Lack of consideration. If one party receives no value or benefit in return for their promise, the contract lacks consideration and is generally not binding.
• A contract may be invalid if both parties made a mutual mistake about a fundamental fact essential to the agreement.
• Impossibility or unenforceable terms. A contract that requires performance that is impossible, overly vague, or violates public policy cannot be enforced.

Learn More About Business Contracts 

There are rules for business contracts in Florida. Florida law requires that specific contracts include particular provisions to be enforceable.  Is yours legit?

Orlando business contracts lawyer B.F. Godfrey from Godfrey Legal can help ensure you have a legally binding contract. We can also help you protect your legal rights. To schedule a consultation, call (407) 890-0023 or fill out the online form.

Source:

floridabar.org/public/consumer/tip012/