What to know about contracts

On Behalf of | Aug 27, 2020 | Business Law |

While it may be possible for a Florida judge to enforce a verbal contract, contracts tend to be easier to enforce when they are in writing. In some cases, an agreement must be in writing to be considered valid. It is important to note that written contracts must contain multiple elements to be considered valid legal documents.

What you have to include in a written contract

To be legally binding, a contract must codify the exchange of goods or services between the parties to the deal. Furthermore, the contract cannot include any terms that may violate state or federal law, and it cannot obligate a person or company to engage in activity that would violate state or federal law.

The parties to the contract must be of sound mind when they sign off on a deal, and a contract may be nullified if anyone was forced or otherwise coerced into signing it. Finally, all parties to the arrangement must agree to the same terms and have a legitimate intention of following them.

If a contract is not valid, a court will not hear arguments as to whether or not it was breached. A judge may also decide that a valid contract was breached but decide that the breach was justified based on other facts presented during the litigation process.

The difference between a contract and an agreement

Although the terms contract and agreement may sound similar, they actually refer to two different things. An agreement is simply an understanding between parties as it relates to their rights or their obligations to each other. A contract is the mechanism that protects your rights for the duration of the agreement or requires you to fulfill your obligations to another person or company.

If you find yourself involved in a contract dispute, it may be a good idea to consult with a business law professional. This person may be able to review a deal to determine if it can be enforced, whether it was breached and how to use its terms to obtain a favorable outcome in your case.