Elements of a Contract

While most people understand that contracts are agreements between two or more parties that outline the terms of personal or professional. Contracts may involve the sale of products, property, or goods, or they may outline the terms of work to be performed. In addition, contracts may be used to guarantee that certain actions will be taken or can protect against the disclosure of important information.

When it comes to business, people often use contracts to guarantee that work will be performed, that employment expectations will be met, or that confidentiality and business practices will be upheld. Contracts can also help settle disputes and are a very useful tool for many businesses and can help make sure that transactions run smoothly for all of the parties involved.

In many cases, business owners or managers will consult an experienced business attorney to help outline the terms of a contract and make sure the document will stand up in court if challenged. In order for a contract to be valid, it must contain clear and concise language outlining the terms of the agreement between the two parties, and must be signed by both entities.

Essential elements of a contract include:

  • Mutual consent over the terms and what is being agreed upon
  • An offer, which usually contains the terms of the agreement
  • Acceptance of the offer
  • Mutual consideration
  • Performance or delivery

In order for a contract to be valid, the parties must outline an agreement (often including the scope of the work to be performed), and must agree to the terms contained within. If a dispute arises, the parties may discuss the offer or make a counter-offer until the terms more closely match the needs of both entities.

Contracts are often used to enforce an agreement made between two parties, and they can help make sure that delivery of the product or service is completed. Failure to do so is considered to be a “breach of contract” and the aggrieved party may be able to take legal action to make sure the work is performed, the goods are delivered, or money paid is returned. In addition, persons or businesses that fail to deliver on a contract may be forced to pay fines or perform additional services.

For assistance with a business contract or contract dispute, visit the website of the Austin business attorneys of Slater, Kennon & Jameson.