Another common mistake made in DIY contracts is missing contract elements.
Contracts can be customized to the smallest degree. The terms that should be included in a contract depend on what the parties want to achieve. As long as both parties agree on the terms and sign the contract, the document is typically legally binding.
There may be an exception to this general rule if a contract is missing an essential element. Under contract law, a contract is formed only if the following elements exist:
- Offer
- Acceptance
- Consideration
- Legality
- Mutuality
- Capacity
For example, a contract cannot contain provisions that violate the law or public policy. In addition, both parties must agree to the same terms through a meeting of the minds. Each party must also have the mental and legal capacity to enter into an enforceable contract. Contracts lacking these basic elements may be void or voidable.
Book a Business Development Planning Session by visiting http://www.reidcouncillaw.com or give us a call at (215) 258-4620 to learn how Reid Council Law Firm can draft valid contracts tailored to your business needs.