What Should Be Included in My Connecticut Business Contract?
June 26, 2019
In all business relations, a contract should be written to ensure that all parties complete their end of the deal. Some businesses trust verbal agreements; however, those types of agreements are not always legally enforceable, as there is no written consent to back up a claim. While a contract does require agreement from both parties, it also creates formal obligations that can be enforced if necessary, while a verbal agreement does not. Regardless of your relationship with the other party, a legal contract is important to avoid future conflict and eliminate any gray areas that may exist.
Business Contract Necessities
Business contracts have elements that are required to make them eligible and enforceable in court. Much like marriage vows, business agreements have requirements that relate to the parties signing the contract and the agreement itself.
Competence: When two parties sign a contract, it is under the assumption that each party is aware of what is being proposed. Both must be of “sound mind” while signing the contract in order for it to be valid.
Offer, Acceptance, Consent: The contract must specify the offer that is being made, since this is the purpose of the legal document. Similar to marriage and annulments, a contract must be signed under the free will of both parties; otherwise, it becomes null and void. The two parties must agree to the terms of the contract. These three terms imply that those signing the contract understand that it is legally binding.
Consideration: Contracts serve as a way to regulate a transaction; thus, it must be mutually beneficial for both signers. If both parties do not give and receive something from the legal document, the contract becomes a gift rather than an equal exchange.
What Are Implied Contracts?
Implied contracts do exist, although they can be tricky to enforce in court. There are two types of implied contracts: implied-in-fact and implied-in-law. An implied-in-fact contract relies on both parties’ actions, conduct, and circumstances to verify that the “contract” exists. In terms of businesses, if a vendor provides a customer with goods, it is implied that the customer would pay for those goods. An implied-in-law contract is a legally enforced obligation to avoid unjust benefit from one party. For example, if a doctor saves someone’s life in public, that professional can technically charge the “patient” because he or she benefited from the physician’s “services.”
Contact a Stamford Business Contract Lawyer
Business contracts require high attention to detail and knowledge of the applicable laws to avoid making mistakes that can lead to serious consequences later. While it may seem like a contract is unnecessary for business relations with family or friends, our Greenwich business attorneys suggest that you formulate legal documents, regardless of the relationship shared between the parties. At the Law Offices of Peter V. Lathouris, LLC, our professionals draft and review contracts for all types of businesses. If you are looking for assistance with the legal side of your business, contact our Darien business law attorneys for a free 30-minute consultation.