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Understanding business contracts

On Behalf of | Jan 5, 2023 | Business Law |

If you are about to enter into a contract agreement, before anything else, it is important to understand exactly what a contract is and what makes it a binding document. The definition of a contract is that it is a legally binding agreement that two or more parties make together. In order to be enforceable, it must meet several criteria that were set by a court of law. In New York state, there must be an offer by one party and acceptance by the other party or parties. Also, there must be consideration, an intention for one party to be bound to the other and mutual agreement by all.

The contract’s criteria are defined as follows:

  • Offer and acceptance: For a contract to be valid, there must be a definitive offer made by one party and there must also be a definitive acceptance by the other party.
  • Consideration: This means that everyone involved with the contract must either provide or promise something valuable to the other. Without those, the contract will not be enforceable.
  • Intent to be bound: Everyone involved with the contract must be able to make a contract and must have the intention of honoring the terms of the contract. All parties must stick with their commitment to the contract.
  • Mutual assent: This is often referred to as the “meeting of the minds.” This shows that all parties are in agreement of the terms of the contract as they are written.

Are only written contracts considered valid?

There are different types of contracts that can be considered valid in New York state. For example, if a verbal contract meets all of the criteria, it will be considered valid in New York state. Another type of contract that can be considered valid is an implied contract. If the contract is implied based on the facts, conduct of the parties (the parties behave as though they have entered into a contract) and circumstances, it is likely that the court will agree to the contracts validity and will have a written contract drawn up.

Solid legal advice from a knowledgeable Staten Island, New York, contract attorney

If you are about to enter into a contract agreement for your business, you will probably feel comfortable knowing that a knowledgeable Staten Island contract attorney walks you through the process and makes sure that you understand everything about the terms of the contract as well as any potential consequences while making sure that you know how to protect your rights at the same time. With your attorney by your side, you can have peace of mind knowing that your business interests will be protected at all times.