What Is A Contract?
Before we can start talking about contract drafting, we need to know what is a contract. A contract is an enforceable agreement of obligations under the law.
A contract is comprised of:
The offer is what one party is offering to the other.
“Mutual assent” refers to the understanding of the agreement between the two parties.
“Consideration” refers to what the offering party will receive in return. It is the “bargained-for reciprocal exchange” between the parties.
Capacity refers to the ability and mental fitness of the parties when entering the contract.
The substance of the contract must not be for an illegal purpose. If the contract violates any laws, it will be determined void.
What Are The Different Types Of Contracts?
The different types of contracts vary widely, and may include employment contracts, contracts between businesses, and contracts for real estate. Contact The Sterling Firm to speak with a business attorney who can handle your contract drafting.
What Is A Breach Of Contract?
A breach of contract is not performing a promise specified in the contract without a legal exception. Usually only one party breaches the contract, and the other party can sue for monetary damages or specific performance of the agreement if the contract consists of a unique nature, for example real estate. A contract can be made invalid if it does not satisfy the elements for formation, is lacking adequate consideration, the subject of the agreement is illegal, one of the contracting party acts in a deceptive manner, or one of the parties do not have the authority to sign.
What Is A Business Contract?
A “business contract” is mostly the same as a normal contract in that it must satisfy the elements of formation. Moreover, many business contracts should include more specific terms like the names of parties involved and the distinctions between the buyer and seller. As in all contracts, a business contract must have an offer, consideration, and acceptance clearly stated, both parties must assent to the terms for the contract to be formed and reach a “meeting of the minds”, and it is always important to make sure the terms are clear and not ambiguous.
Different Types Of Contract
- Sales Contracts: Determine the rules regarding the goods a business sells.
- Employment Contracts: Clarifies the work an employee does, can contain requirements like non-disclosure, not working for a competing company while employed, and the pay the employee will receive.
- General Business Contracts: Non specified items that could prevent future problems if contracted.
Los Angeles Business Lawyer For Contract Drafting
If you need to draft a contract, contact a business attorney at The Sterling Firm. We have an attorney experienced in handling business transactions and contracts. We can help! Call now to speak with an attorney!