People frequently enterinto contractual agreements, almost unwittingly, without giving serious thought about the formation of that contract or the legal consequences thereof.
Contracts can be as familiar as a service provider contract, such as a cell phone plan. However, other contracts are complex or govern subjects of an important nature. In these situations, the parties should seek the counsel of an attorney.
CONTRACTS 101Definition: A contract is a legally binding agreement between two or more parties. Contract formation: One party makes an offer to do something in exchange for payment or other consideration, and the other party counters until each side reaches mutually agreeable terms. Generally, a contract is formed as follows:
4. Mutually agreeable terms
BASIC TYPES OF CONTRACTS:
It is prudent to secure a written contract because it alleviates misunderstandings or dishonest dealings.
The Statute of Frauds proscribes which types of contracts cannot be oral and must be in writing in order to be legally enforceable, such as the sale of real estate.
An implied contract is not written or oral, but is formed by the conduct of the parties. A simple example is dining at restaurant. There is an implied contract that you will pay for your meal before you leave the restaurant.
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