There are a large number of situations in which contracts may be drafted in business. All entrepreneurs eventually find themselves in circumstances where they must draft contracts. A contract is simply a legally binding agreement between two or more parties. Many individuals don’t know the legal basics of contracts.
Here is some general information on contract law. A contract must meet five basic requirements to be admissible in court:
* All parties must be capable: If a party is incapable of understanding the contract, it cannot be enforced in a court of law. Those considered incapable may include minors, mentally unstable individuals, and individuals acting under duress.
* The purpose must be legal: Contracts that involve illegal activities are considered invalid in court. All activities and services agreed upon in the contract must be 100% legal.
* Consideration: This is basically what defines a contract as such. All parties involved must be providing something of value for a contract to be considered a contract.
* Offer and acceptance: These must be clear. Both parties must accept the service(s) or payment provided by the other clearly and without any qualifying statements.
* Mutual assent: This is another term for the consent of both parties to be involved in the contract. There must be an agreement that the contract is legally binding and that all terms have been understood and accepted as written.
There are many other aspects to contract law but these are some of the basics. If you live in Santa Barbara and wish to draft a contract, it may be beneficial to call an expert in contract law in Santa Barbara, CA. An expert in Santa Barbara contract law Barbara can help you to choose the right words and make sure that your contract is legally binding and enforceable.