Most people encounter a variety of different types of contracts throughout their lifetimes and you may be no different. You may have encountered contracts in both your personal and professional lives. Contracts play a variety of essential roles and are important to the success of any business. As such, contracts should be thoughtfully negotiated, drafted and reviewed.
A good contract will carefully record the rights and obligations of the parties entering into a business relationship. It will also accurately record the understanding between the parties. In addition to memorializing the agreement between the parties so that the duties and the benefits of the contractual relationship are properly recorded, a good contract will also preserve a party’s rights moving forward and protect the business as it grows and enjoys success in the future.
To be legally enforceable, a valid contract must meet certain requirements. There are several elements that are part of a valid contract including offer, acceptance and consideration. There can also be a variety of other important requirements for a valid contract. While contract terminology may be technical, there are also different types of contracts, including written, implied and oral contracts, and all are often a part of our daily lives.
For a number of reasons as well, contract disputes sometimes arise and breach of contract, fraud, misrepresentation or other claims may be made. It is important in such circumstances to understand how to effectively negotiate or litigate the situation as necessary.
Given the abundance of contracts in our lives, you may have found that contracts can sometimes be somewhat complicated to negotiate and draft and that, many times, a contract may be reviewed multiple times before it is executed which can be a complex process. Because contracts are essential to many different industries, from the real estate and construction industries to the general business, banking or financing worlds, carefully executed contracts are important to the growth and long-term success of a business.
For more information on the importance of well-constructed contracts, visit our website.