Do you need a business lawyer to review or draft a contract?
If you are starting a new business, contracts will be one of the most common legal transactions you’ll be involved in. This means it will be important to take time and learn about business contracts.
The Definition of a Contract
A contract is an agreement that is legally enforceable. It will involve at least two parties and creates an duty(s) for at least one party to do or not do certain things. A party can be an individual person, any sized company, an organization, or a corporation.
The Laws that Govern Contracts
Contracts are typically governed and enforced the legislation that has been set forth in the state where the contract was agreed to. A contract could be presided by two different types of laws:
- Common Law – Leases, employment agreements, and standard business agreements are usually governed by the common law of the state. Common laws come from the judicial decisions of the court and evolve overtime with each judge’s ruling or decision on a case.
- The Uniform Commercial Code – Contracts that are for the sale of any service or goods is not controlled by common law, but rather UCC. This is a set of guidelines that control the laws of any commercial transaction. Most states have adopted the entire UCC, but some only partially. A business lawyer can explain more about the UCC, common law, and what type governs your contract during a consultation.
How a Contract is Created
- An offer is made,
- there is an acceptance of that offer, and;
- reasonable consideration to make the contract valid.
The term consideration in this sense, is a legal term for the “bargained-for exchange” between all parties of the contract. Furthermore that the contract will benefit both parties in some way.
The Different Types of Contracts
There are a few common types of contracts. A business lawyer will know what contract you need for your situation and will be happy to explain the details of these contracts when you speak with him or her.
- Bilateral Contract – A mutual exchange of promises between parties.
- Unilateral Contract – A performance is requested, the performance is complete and a reward is given in return.
- Express Contract – An explicit written or spoken contract which details the terms and conditions of an agreement.
- Implied Contract – Established through the behavior of the parties, particularly when there is a clear intent to enter an agreement.
- An express contract – is formed by explicit written or spoken language, expressing the agreement and its terms.
When the Terms of a Contract Are Not Met
When a party does not adhere to the terms of a contract, it may be considered a breach. It is possible to enforce a breach of contract through dispute resolution or litigation. If you are involved in a contract dispute, please call a business lawyer for further advice.
Do You Have Questions About Your Business Contracts?
If you are involved with a high stakes contract, require a contract to be drafted, or are facing a dispute over a contract, do not hesitate to contact an attorney, like a business formation lawyer Roseville CA turns to, to ensure that you are in a proper position.
Call now to speak with an experienced business lawyer who will listen to your needs.
Thank you to the Yee Law Group for providing their legal insight on business contracts.