Legally Enforceable Contracts & Breach of Contract LawsuitsBy James Blake on
Will your business successfully enforce a contract in the worst case scenario, where business deals unravel into contract dispute and breach of contract litigation? Even large, sophisticated businesses, professionals, and investors make contract law mistakes, and may pursue a breach of contract lawsuit only to discover that they never had a legally binding contract. Protect yourself with a Texas business lawyer who can advise and negotiate enforceable contracts for you, before a contract dispute or breach of contract lawsuit begins.
Legally Enforceable Contract Requirements
Offer & Acceptance: A binding contract must have an offer and acceptance of “consideration,” where parties agree to exchange something of value. A business contract where only one party offers to exchange something is not a binding contract – you can’t enforce a contract that is “merely a promise.” Additionally, you can’t enforce a contract where the exchange is for “past consideration” – things that have already been given or performed cannot form the basis of a binding contract.
Meeting of the Minds: The parties must agree on all of the “essential terms” of an enforceable business contract. Price and quantity are always essential terms in a business contract, and others apply depending on the type of contract. If you cannot show agreement on all essential terms, you may have an unenforceable contract found to be merely an “agreement to agree” in a breach of contract lawsuit. Depending on the type of contract or business, federal law or Texas contract law may require additional language in your contracts. A Texas business lawyer can consult with you to ensure your contract agreements are not only binding agreements, but also in compliance with Texas contract law and federal laws.
Legally Executed Contract: To enforce a contract agreement in contract dispute or breach of contract litigation, you must show that all parties agreed to the business contract. The best proof is the parties’ executed signatures on a comprehensive business contract advised by your Texas business attorney. You can enforce oral agreements without a signature, but it may be difficult to prove the terms of the business agreement in a breach of contract lawsuit if you have merely an oral agreement and little other evidence.
Our Texas business law firm regularly advises small business owners, investors, and professionals in all areas of contract law, contract negotiation, and contract dispute or breach of contract lawsuits. To speak with a Texas business attorney, call our firm today.
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