Requirements for a Valid Contract

When you enter into an agreement and sign a contract, you would expect that it would be enforceable in court in the event of a dispute. Not every contract ends up being enforceable. If it does not meet legal requirements, you may not have the protections that you expected.

The first legal requirement for a contract is that each party must have the capacity to enter into an agreement. If someone is a minor or is not of sound mind, they cannot enter into a binding contract.

One of the main legal requirements for a contract is that there is consideration. There is no such thing as a gratuitous contract. One party is doing something (or not doing something) in exchange for something from the other party. Consideration can be an actual benefit or refraining from doing something that you otherwise could do.

Contracts are not valid unless there is an offer and an acceptance. One party needs to make the offer to the other side. For example, a real estate seller could offer a home for $500,000. The buyer would come along and agree to buy the home for the price.

Finally, both of the parties would need to show an intent to be bound by the agreement. You cannot accidentally enter into a contract. While the agreement should preferably be in writing, it is not an absolute requirement in order for the contract to be enforceable. However, certain types of contracts, like real estate, must be in writing.

Contact an Atlanta Business Contracts Attorney Today

Before you sign a contract, it is best to have an attorney review it and even help you draft it to make sure you have a valid contract. To learn more about how we can help, call Battleson Law LLC today at 470.766.0811 or send us a message online.

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