I could spend hours talking about contracts and how a good contract can help your business grow and a bad contract can absolutely destroy your business. This essay is designed to give you a basic introduction to contracts and what is required for a legal, valid and enforceable contract. 

Even with the information in this and my follow up articles, you need good legal help, especially when you start your new business, but throughout your business operation to make sure you get a good, fair deal for your business and The Collins Firm can help you get what you deserve.

All contracts must have the following elements: 

Meeting of the minds – both sides must know and understand what the deal is.  Clarity in the contract is crucial for there to be a meeting of the minds and thus the contract needs to show the elements of the deal.  For example, if you’re selling a product, then the other side has to understand he’s buying a specific product.

Offer and acceptance – one side has to make an offer to purchase and the other side has to say yes, I’ll accept that offer.  The contract needs to be very clear what the product or service is that is being offered and purchased.

Mutual Consideration – in order for a contract to be valid, there must be an exchange of value.  Mutual Consideration is a very common failure in a business contract.  Even though it seems simple, the contract needs to show the value given by each side so if you sell a product, you need to show what’s being paid for the product.

Performance or delivery – finally, no contract is valid and enforceable, until some form of performance or delivery takes place.  Until you have some level of performance, there isn’t a valid and binding contract. 

The Collins Firm can help you design and develop contracts that are valid and enforceable so you can be confident that you’ll be paid for the products and services that you sell.  This is a continuing series of essays on contract so check out the second essay here.