What Makes a Contract Enforceable?

Not every contract ends up being enforceable if one party challenges it in court. At its core, a contract must be for a legal purpose and must be freely negotiated between the two parties. It cannot be so one-sided as to be unconscionable.

The main thing that makes a contract enforceable is that each party is giving the other something in the agreement. This is called consideration. Without it, there cannot be a contract. In essence, a contract is about two parties making parties to each other something that has value to each. In other words, the basic purpose of a contract is “I will X for you if you do Y for me.” Otherwise, it would be a gratuitous promise. If you were to promise to give someone free money, it would not be an enforceable agreement because there is no agreement.

Other Elements of an Enforceable Contract

In addition, enforceable contracts require the following:

  • Mutual assent – each party must agree to the terms
  • Offer and acceptance – one party offers the contract, and the other accepts it
  • Capacity to contract – contracts must be signed by someone with the mental and legal capacity to do so

Besides the basic requirements for an agreement, a contract should be drafted in specific and definite terms. If any parts of the agreement are vague, they may not be enforced the way that you intended. They may not even be enforced at all.

This is why you would always benefit from a contract attorney’s review before you sign any agreement. The last thing that you would want is to think that you have a contract, and it is unenforceable.

Call an Experienced Atlanta Contracts Lawyer

For advice and review of your contracts, contact a business attorney at Battleson Law online or call us at 470.398.0720.

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