Following are the elements of a legal contract:
• Offer and acceptance
a. Express - Can be oral or written
b. Implied - The actions and circumstances of the parties form the contract. It is unwritten. It can be legally binding on both parties because of the intention of the parties to act. For example, use of water in a home is an implied contract with the utility dept of that city.
• Consideration - an exchange for something
• Capacity
a. Undue influence - There must not be undue influence. A person in authority cannot influence someone to enter into a contract.
b. Minors - A person must be over the age of 18 to enter into a legal contract, or the contract is voidable. If the minor turns 18 and has not gotten out of a contract, the contract is considered ratified.
• Intent - The parties must have the essential intent of entering into a contract. Intoxication, error, insanity, etc., is cause for void.
• Legal - For example, a real estate contract is void if not in writing.
The basic essentials remain the same no matter what type, and that is the offer and acceptance. Even with an implied contract, the parties have reached an agreement of an offer and acceptance even though it is not expressed in words.
Why retain a Business Attorney:
1. Review Documents
Business attorneys cover a vast scope of issues in which they may be retained for contracts. Many people use this type lawyer simply for document review. The fine print in every contract can be difficult to grasp for the average individual. Contracts for employees, suppliers, leases, real estate sales contracts, and other type documents require a skilled contract attorney to read through the legal terms and decipher exactly what the conditions or the instructions are for the contract at hand.
2. Advice
A competent contract attorney can give advice as to the risks involved and whether the clauses in a contract should be modified. He or she will interpret the legal language, thereby resulting in a better understanding for the person signing a contract.
3. Write the Contract
Drafting the document is not an easy task. A contract attorney is absolutely the best candidate for making sure that a contract is sound, valid, and cannot be broken without consequences. He or she can draft a contract as easy as the average person can write a letter. The good news is that the retained attorney works for the best interest of the client, while making sure that the terms and conditions are essential and valid. Lawyers know how to insert the right clauses in a contract to make sure there are no legal problems down the road.
Breach of Contract
When it comes to breach of contract, remedies must be sought after. This is not easily accomplished without the help of an attorney. Breach of contract occurs when one party does not perform his part of the agreement.
Four things that must be proven for a breach of contract are:
a. It was a valid contract;
b. The defendant broke the contract;
c. The plaintiff performed his or her part of the contract;
d. The plaintiff notified defendant of his or her breach of contract, preferably in writing; and
e. Damages.
The goal is for the non-breaching party to return to the position he or she was in before entering into the contract. The elements of this goal ultimately figure in the damages to conclude this type of lawsuit. For sales contracts, according to the UCC, the formula is "lost profits plus incidental/consequential damages minus avoided expenses equals the default measure for damages."
The most important thing to remember is that a contract is a legally enforceable agreement. It is important that ambiguous terminology be avoided when writing one. That is why a contract attorney retained from the start will help ensure that future litigation does not occur.
• Offer and acceptance
a. Express - Can be oral or written
b. Implied - The actions and circumstances of the parties form the contract. It is unwritten. It can be legally binding on both parties because of the intention of the parties to act. For example, use of water in a home is an implied contract with the utility dept of that city.
• Consideration - an exchange for something
• Capacity
a. Undue influence - There must not be undue influence. A person in authority cannot influence someone to enter into a contract.
b. Minors - A person must be over the age of 18 to enter into a legal contract, or the contract is voidable. If the minor turns 18 and has not gotten out of a contract, the contract is considered ratified.
• Intent - The parties must have the essential intent of entering into a contract. Intoxication, error, insanity, etc., is cause for void.
• Legal - For example, a real estate contract is void if not in writing.
The basic essentials remain the same no matter what type, and that is the offer and acceptance. Even with an implied contract, the parties have reached an agreement of an offer and acceptance even though it is not expressed in words.
Why retain a Business Attorney:
1. Review Documents
Business attorneys cover a vast scope of issues in which they may be retained for contracts. Many people use this type lawyer simply for document review. The fine print in every contract can be difficult to grasp for the average individual. Contracts for employees, suppliers, leases, real estate sales contracts, and other type documents require a skilled contract attorney to read through the legal terms and decipher exactly what the conditions or the instructions are for the contract at hand.
2. Advice
A competent contract attorney can give advice as to the risks involved and whether the clauses in a contract should be modified. He or she will interpret the legal language, thereby resulting in a better understanding for the person signing a contract.
3. Write the Contract
Drafting the document is not an easy task. A contract attorney is absolutely the best candidate for making sure that a contract is sound, valid, and cannot be broken without consequences. He or she can draft a contract as easy as the average person can write a letter. The good news is that the retained attorney works for the best interest of the client, while making sure that the terms and conditions are essential and valid. Lawyers know how to insert the right clauses in a contract to make sure there are no legal problems down the road.
Breach of Contract
When it comes to breach of contract, remedies must be sought after. This is not easily accomplished without the help of an attorney. Breach of contract occurs when one party does not perform his part of the agreement.
Four things that must be proven for a breach of contract are:
a. It was a valid contract;
b. The defendant broke the contract;
c. The plaintiff performed his or her part of the contract;
d. The plaintiff notified defendant of his or her breach of contract, preferably in writing; and
e. Damages.
The goal is for the non-breaching party to return to the position he or she was in before entering into the contract. The elements of this goal ultimately figure in the damages to conclude this type of lawsuit. For sales contracts, according to the UCC, the formula is "lost profits plus incidental/consequential damages minus avoided expenses equals the default measure for damages."
The most important thing to remember is that a contract is a legally enforceable agreement. It is important that ambiguous terminology be avoided when writing one. That is why a contract attorney retained from the start will help ensure that future litigation does not occur.
A good Los Angeles business attorney can help with all aspects of contracts and contract law and finding a good lawyer in Los Angeles should be done with the proper amount of research.
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