Basic Contract Law
In the construction world, contractors deal with contracts on a daily basis. A contract is a binding agreement, something that is essential for business dealings. If one party does not hold up their end of the contract, the other party can turn to legal action to help with any of the resulting damages. Every contract must meet specific requirements to be enforceable by a court. Before entering into a contract with another party, you should consider hiring Tampa construction attorneys who knows the ins and outs of contract law. Here are a few things to keep in mind when entering a contract.
What Are The Key Terms You Need To Know?
As your Tampa construction attorney we’ve compiled an overview of the major key terms you need to be aware of.
Consideration. In order for any contract to be legally binding, it must include a consideration. A consideration is the benefit that each party gets or expects to get from the contract agreement. To make a consideration valid, each party needs to make a change in their position. For example, either a promise to do something you’re not legally obligated to do or a promise not to do something you have the right to do (i.e. a promise to not file a lawsuit).
Offer And Acceptance. There must be a definite offer and acceptance to create a legally binding contract.
Legal Purpose. The purpose of the contract must not violate the law.
Capable Parties. This is exactly what it sounds like. Each party must be “capable” of making a contract, i.e., understanding what they are doing.
Mutual Assent. This is where all contracting parties must intend to be bound by their agreement and need to agree on all essential terms.
What Makes Up A Contract? A contract typically refers to a written agreement, including the following:
- Introductory materials
- Key Term Definitions (See Above)
- Statement Of The Purpose(s) Of The Agreement
- Exhibits Or Attachments
- Obligations And Conditions
- Signature Block
The Contract Process
Phase 1: Contemplating The Deal. This is when all of the parties assess the prospective arrangement and all the associated risks and attempt to predict the outcome.
Phase 2: Reaching An Agreement. This phase includes the parties negotiating and agreeing on terms, which are formalized into a written contract.
Phase 3: Performance And Enforcement. After the contract is drawn out, the parties are now legally required to uphold to their mutual obligations. If one party fails to perform, the other has the option of disputing to enforce the deal.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.