You can’t be in business very long without having sound contracts. Contracts govern your company’s relationship with its employees, suppliers, and other critical parties. However, not all business contracts are created the same. Careful drafting of these agreements is essential to protecting your rights and interests.
And the best way to meet this goal is to retain a skilled Houston business lawyer. The Oracle Legal Group represents Texas businesses by providing comprehensive legal services.
What Are the Requirements for Enforceable Business Contracts?
Contracts are essentially agreements by one party to do something for another party in exchange for something of value. However, additional details must be present for the contract to be enforceable.
The parties must be competent.
Legal competence includes age and mental status. A contract entered into by someone under the age of 18 is voidable. That means minors can disregard the contract, while an adult cannot. But the individual must be mentally competent as well. This means being of sound mind and able to understand the consequences of signing a contract.
The subject matter must be legal.
This should go without saying, but a contract to do something illegal isn’t enforceable. If you aren’t sure whether the subject matter is legal, ask a Houston business lawyer.
There must be a meeting of the minds.
This means one party makes an offer and the other accepts it. A valid offer should state what the contract is for, who the parties are, and what the consideration is (see below). The accepting party must clearly accept the terms of the offer.
Basing acceptance on additional, new terms that the offering party must then accept is a counteroffer, not an acceptance. The accepting party must also not be under duress and there can’t be fraud.
There has to be consideration.
Basically, consideration means both parties have something to gain and to lose in the deal. Put another way, there must be an exchange of something of value.
Assume Party A agrees to do work for Party B in exchange for $100. Party B receives the benefit of the work being done while Party A receives the benefit of the $100. But both could also lose something if the contract is breached. Party B could pay the $100 but Party A might not show up to do the work. Conversely, Party A might do the work and then not get paid.
How a Houston Business Law Attorney Can Help
The Oracle Legal Group knows what it takes to draft enforceable Texas business contracts. But the above are just the basic elements of what makes a contract valid. Much more goes into drafting contracts that are in your best interests.
When a client retains us, we look into their business needs and what they hope to get from their contracts. We identify the various relationships that should have contracts and then get to work drafting them.
Then we present them to the opposing party for their review. If they accept the terms of the contract we execute and help our client enforce it. Otherwise, we negotiate until there is a meeting of the minds and an enforceable agreement can be signed.
Serving the Legal Needs of Your Texas Business
The Oracle Legal Group is here to help with any aspect of Texas business law. From starting and terminating businesses to drafting, executing, and enforcing business contracts, we have you covered. Contact us today to learn more with a free consultation.
