The Elements of a Contract

Having a legal contract is always good no matter what is the reason. The purpose of legal contracts is to protect the people or businesses from almost everything. If you have some kind of a disagreement, a contract will help you decide what road to take. If someone involved in a contract disagrees with the contract, he will be facing some legal issues. Here are some of the crucial elements of a good legal contract.

Valid Contract

The first thing before you sign any type of contract, you must check if it is a valid one. That is important because if a contract is not valid, it has no power or meaning in the courtroom. Therefore, if you want to be sure that the contract is worth something, you should check if it is valid. Otherwise, the contract doesn’t have any purpose, other than scamming you or other people.

Consideration

Consideration can be money or even a promise that one party is made for exchange for some other promise. All types of contracts should be supported by some kind of a consideration. As long as a valid consideration is existing, the court will not question its competence.

Acceptance

When one person is made an offer to the other party, it has to be accepted in order to form a valid contract. When the person that is accepting, the offer wants to make some kind of a change to the terms of the offer that is called a counter offer.

Statue of Frauds

Sometimes, the contract must be in a written form. If for some reason the parties don’t want to make it written, the court will force them to make a written copy. Of course, rules are always different depending on which state you live in, but there is a general rule for some types of contracts that they have to be in the written form otherwise the terms that the contract is including will not be completed.

The Breach

If a contract is broken by one of the parties, the other party must have evidence to prove that the other party was the one that broke the contract. Of course, before he or she starts to search for proof, first he needs to check again if the contract is valid, otherwise, he will never get what he wants from the court because it is not a valid contract. The easiest way to show someone has broken their side of the contract is if they didn’t pay their part.

Damages

The party that wants to prove that the other one has broken the contract should also try to prove that he got harmed in that process. This damage can be anything, for example, loss of money or even loss of time. However, it is very hard to prove that one of the parties have lost his time because