What is a Contract?
A contract is an agreement involving two or more parties to exchange goods or services for some type of benefit, known as consideration. (Consideration is usually money, but could be goods or services as well.) To be a valid contract, it must contain the following elements:
- An offer
- An acceptance of the offer
- A promise to perform
- Consideration (the promise of payment in some form)
- A time or event when performance must occur
- Terms and conditions for the performance (details!)
Types of Contracts
There are many types of business contracts, from those that involve money, such as sales contracts, to contracts that define a relationship, such as a confidentiality or non-compete agreement.
AT BERDAN PARALEGAL SERVICES we are proficient at drafting:
- Promissory Notes
- Service Agreements
- Employment contracts
- Release/waiver agreements
- Legal documents ( within scope of practice )
Contracts should always be in writing. Although oral contracts are binding, their validation is much harder to prove.
They must be signed by all parties involved in the exchange, and are legally bound to the signed parties. If one of the parties fails or refuses to fulfill their promise without a valid reason recognized by law, the party suffering the consequence can ask the courts to either force the defaulting party to carry out its promise, or to demand compensation.