What Are The Elements Of A Strong Business Contract?

A contract is an agreement between two parties for a mutual benefit. Typically, they are negotiated in advance, and both sides are well aware of what they are about to sign, but that doesn’t necessarily make a contract strong. A strong contract is one that can withstand the external legal pressure and overcome the scrutiny of litigation.

At Burnett & Griffin, PLLC, we are dedicated business law attorneys who help clients in Elizabethtown with all aspects of contracts. From negotiation to litigation, we’ve got the legal experience and understanding of Kentucky law to be the resource you need to solve the legal challenges ahead.

The Creation Of A Contract

As the basis of almost all business relations, contracts are often assumed to involve many moving parts and even more pieces of paper. However, that’s not true. For a contract to be valid and enforceable, it must contain these elements:

• Offer: This is exactly what it seems like; one side in a contract offers another an agreement to pay for the completion of some duty. It doesn’t necessarily have to involve money, but those are the most common.
• Consideration: The person receiving the offer may think about it and make a counteroffer and change things. This is typically where the negotiations happen.
• Acceptance: Both sides agree to the contract; however, it must be noted that neither side can be coerced into accepting, and they must have the capacity to make a contract.

Along with these elements, many written contracts also contain terms, conditions, definitions and many other important pieces that clarify and strengthen the contract. However, it is extremely important to note that not all contracts are, in fact, written on paper. Many contracts are verbal or “handshake” agreements, and these are enforceable in court.

Avoid Mistakes In Crafting Contracts

As your attorneys, it’s our job to help you perceive and avoid any mistakes or risks in crafting a contract. We’ve seen many people and businesses fall victim to extreme terms and difficult conditions because of the contracts they sign. And in these situations, with the exception of the most harmful of clauses, they have an uphill battle to get relief.

The biggest mistake that people make is not conducting proper due diligence in their contracts. This is where calculation errors and any other uncomfortable clauses come from.

We Have Your Back

As your contract lawyers, we’ll diligently prepare all your contracts and make sure they are actionable, enforceable and most of all fair to you and your counterparts. Reach out to us today to help you build your business. Call us at 270-506-0246 or send an email using this form.