A successful contract unfolds when each party performs its obligations. A contract must have certain minimum basic things in order to be valid. Here are some of the basic requirements.
Consideration
This is a legal term for the requirement that each party to the contract must be promising something. Most commonly, one person provides a good or service, and the other provides money. You cannot have a contract where one person promises to do something for another for nothing in return. That is a gratuitous contract, and it is unenforceable.
Offer and Acceptance
One side begins the contract by making an offer. The other party must clearly accept the offer. This must be definite, as a court will not imply an offer or acceptance. The order is:
- One party offers
- The other accepts
- Each party performs its part of the contract
Capacity
Each party to the contract must have the ability to make an agreement. For example, minors and people with mental incapacity cannot enter into contracts. The court could go back and void a contract if one party did not have the proper capacity.
Legal Purpose
Two parties cannot contract to do something illegal. The basis of the contract must be for something that is permitted by law. Otherwise, it is null and void.
Meeting of the Minds
The two parties to the contract need to be clear that they are agreeing to something. They must also have a common understanding of the essential terms of the contract. Otherwise, there could be a mutual mistake, and the court could not enforce the contract.
Experienced Atlanta Contract Attorneys Can Help
If you are involved in a contract dispute, you need legal help from an Atlanta business contract attorney. Contact an attorney at Battleson Law LLC at 470.398.1175 or contact us online to schedule an initial consultation.