Contract Law in Santa Ynez Valley CA concerns complex, legally binding documents that. when properly created, can have significant implications for business owners. Because of the nature of contract dispute cases, owners should not handle these matters alone. For such situations, you could look here to learn how hiring a contract attorney can provide the business owner with a distinct advantage.
What are Contracts?
A contract is a legally enforceable agreement between multiple parties. Contracts can be verbal or written, although a binding contract is usually made in writing. To be binding, a contract must be signed on a voluntary basis without duress. If either party does not fulfill the contract’s terms, they are in breach and can face legal action.
Parts of a Binding Contract
Not all agreements between parties are legally binding. To be enforced, a contract requires that the following elements be met.
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Mutual assent: The involved parties must understand what’s covered in the contract. If either party misunderstands the terms of the contract, there’s no consent and no enforcement.
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Offer/acceptance: A party must communicate the intent to be bound by the contract’s terms, and the other person must accept the terms as offered.
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Consideration, or the exchange of something valuable. Although consideration may not be mutual, there are certain circumstances where a non-mutual promise may be enforced.
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Capacity: All involved parties must have the legal ability to agree to a contract. Underage and mentally impaired individuals cannot sign contracts.
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Purpose: A contract must be made strictly for legal reasons. Contracts to commit fraud or other crimes cannot be enforced.
Unenforceable Contracts
Even when the above criteria are met, a contract may be deemed unenforceable for other reasons. These may include:
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Duress, which can occur when a party is forced to sign
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Public policy violations, which violate state or federal laws or enforce an immoral act.
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Non-disclosure, which occurs when a party misrepresents the contract to encourage the other party to accept its terms.
Contacting an Attorney for Contract Help
As mentioned above, Contract Law in Santa Ynez Valley CA is very complex. If a person decides to sign a legally binding agreement, a contract lawyer can help them draft the agreement properly to ensure that it is legally binding.
