Contracts guide and rule the most important moments and events in our lives. We sign a contract when we get married. We sign a contract when we get approved for a home or auto mortgage. We sign a contract when we get hired for a job. We sign a contract when we enter into business partnerships. Contracts bind us to the terms explicitly specified in them.
Contracts also prevent you from having to call a bail bond service in Park City or in any other area because you were jailed for an item in a contract that you failed to honour and follow. Contracts are ways for people to have respectful and lawful relationships, whether it’s a personal one like a marriage or a professional one like an employer-employee relationship. Every signatory is duty-bound to follow that contract. So what should all contracts have that will ensure the protection of the signatories?
Names and Contact Information of People Involved
This is extremely important and often missed. The contract must include the full legal name and current contact information of the people involved in the transaction. They must present a valid ID to show that they are of legal age and have the capacity to sign and execute a contract. The contact information is also important because this is the same info that will be used in the event that a case must be filed against one of the parties.
There must be an offer on the table. The contract must stipulate what a party is offering the other party. For example, in a real estate transaction, the offer is a one-hectare property. On the offer part of the contract, the characteristics of the real estate property must be defined. This means that the offer must provide an address, physical location, determination, limitations, and the value of the property.
For a contract to be binding on the part of the seller or the service provider, there should be an acceptance from the buyer or the client. The person agreeing to the offer must accept the terms and conditions of the contract. That person must agree to the contract in clear knowledge of what he is entering into. If they are under duress, the contract is invalid. Both parties must mutually agree to accept the terms of the contract.
Payments and Other Considerations
The contract should stipulate the amount of the transaction, the schedule of payments, and the penalty fees for late payments. If the transaction is not monetary, this part of the contract should still stipulate what will be exchanged for the products or services rendered by one party. To complete a contract, one party must “pay”—whether in monetary or in-kind—the other party.
You get into loose agreements with friends and family all the time. You draw up plans only to cancel it at the last minute. That’s annoying, but legally, it’s okay. There’s nothing that binds you to your plans. A contract must adhere to the laws of the state where it will be executed. It empowers both parties to sue one another in case one of them didn’t follow the terms and stipulations of the contract.
Before signing a contract, you must read the terms and consult with a lawyer to explain the items you are not clear about. This will help you make a proper decision, whether the contract is made with your interest in mind. During the course of the transaction, you can revisit the contract to hold your end of the bargain, as well as demand accountability from the other party.