Contract Law – How to Create a Legally Binding Contract | Small business news; tips; networking

Posted by SBA.gov under Management
From http://www.sba.gov 4344 days ago
Made Hot by: Evan Collins on January 6, 2013 5:47 am

Whether you are entering into a relationship with a customer, a vendor or an independent contractor, contracts are a fact of business. You need them because they serve as legally valid agreements protecting your interests. But aren’t contracts laden with legalese? Don’t they have to be blessed by an attorney to ensure their validity? Not always.

Here are some tips for drawing up a legally-valid contract.

Who Voted for this Story

Top BizSugar Users

This week's most active BizSugar users. Join Them!

Comments

Written by ahmedmahir
4341 days ago

Mainly the contract includes the four components of an agreement. Essential components of an online contract are: 1) an offer of service, 2).acceptance of the offer, 3) consideration (which are the services or money you agree to provide) and 4) an intention to enter legal relations. Digital signatures, or even measures such as confirmation emails, provide sufficient evidence of an intention to enter into a contract.

To Protect yourself by adding contingencies into your contract. Contingencies allow you to cancel a contract if certain conditions are not met. Depending on the type of legal agreements you decide to enter into online, contingencies can be vital to your financial well-being. For example, if you are selling or buying a vehicle, a contingency clause may be that the vehicle must pass a state inspection test before the transaction will be finalized. While contingency clauses may clarify expectations for both parties of a sale, beware of adding too many since they may overwhelm a buyer.

- 0 +