What makes a contract valid and enforceable?

On Behalf of | Nov 30, 2020 | Business Law |

Businesses count on contracts to help keep themselves protected. This includes getting the goods and services they need, as well as keeping them from having to deal with frivolous claims of others. It’s imperative that the contracts are valid and enforceable, so they provide those protections.

There are sometimes very small points that can make a huge difference in a contract. This goes for written contracts, as well as verbal ones. Because of these finer points, it’s usually best to stick to written contracts that have been reviewed by your attorney.

In order to be valid and enforceable, the contract has to contain terms that are legal. Contracts that contain anything illegal won’t be enforceable in court. While this isn’t an issue for most companies, it’s something that must be considered if there’s ever any question about the terms.

Another factor that must be considered is that the contract is only valid and enforceable if both sides agree to the terms. In the case of a written contract, this occurs when both parties sign the contract. But, there isn’t a signature in a verbal contract. This is one reason why it’s sometimes difficult to enforce a verbal contract.

Anyone who’s in business should have their attorney review any contracts they’re considering. This helps to ensure that your interests are protected. Your attorney can help you to spot any problematic elements and offer you guidance on how to correct them. If there’s ever a breach of contract or an issue with the contract, your attorney can work on your behalf to address the issue.