At one point or another, most of us have entered into some type of agreement with another party. If you have leased or purchased property, started a business partnership, or agreed on the price of home repairs or improvements, then chances are you have signed a contract to solidify the agreement made. These agreements, whether verbal or in writing (except for real estate, which must be in writing), are contracts and are legally binding, however verbal contracts can be more difficult to validate.
Contracts are written to express the responsibilities of each party entering into an agreement, and while this may seem somewhat basic, the way in which a contract is written can be quite complex. A poorly written contract can result in dispute and/or legal action, therefore, hiring a Contract Law attorney can make all the difference when it comes to contract formation and structure. Not only can a Contract Law attorney adequately assist in crafting a contract, they can offer advice on existing contracts and general counsel should a contract need enforcing.
For a contract to be legally effective, there are certain requirements that must be met. These requirements include:
Legal Purpose: The purpose of the contract must not violate any laws. For example, one cannot agree to steal a car in exchange for monetary gain.
Competent Parties: Each party entering into a contract must be of legal age and be of sound mind. In other words, those entering the agreement should be capable of doing so, while understanding what they are doing.
Offer and Acceptance: A contract is considered valid once an offer is made by one party and accepted by another. The offer must state what the “offeror” is committed to be bound to and agreed upon by the party accepting said offer, or the “offeree”.
Consideration: The concept of consideration is that each party of the contract agrees to provide something of value in exchange for the same. Without consideration, there is not binding contract.
Mutual Assent: Mutual assent is the agreeance of the two parties who are entering into a contract. Both parties agree to the terms set once all requirements are in place. Also referred to as the “meeting of the minds”.
Ted Bendelow of Bendelow Law Firm, LLC has over 46 years of general counsel experience to include Contract Law and Breach of Contract. He has proudly served clients in Boulder, Longmont, Denver and throughout Northern Colorado. If you need the expertise of a Contract Law attorney, call Ted Bendelow at Bendelow Law Office, LLC for a consultation.