Legal Considerations for Business Contracts
Contracts should be based on the laws of the land where it is celebrated or enforce. An enforceable business contracts are essential to your business company’s defensive and offensive strategies. One example of which is the non-disclosure agreement, this is an agreement between parties to keep all trading secrets between them. The purpose of this contact is to protect the interests of both parties against their competitors. Moreover, business contracts must have enforceable clauses to protect their company from customers in claiming something from the company.
The United States laws on contract regulate the obligations of parties as established by the agreement set forth on their specific contacts. The laws are different from one state to another and there is no specific federal contract law the covers the generic required elements for contracts in the entire United States. However, the contracts on the sale of goods have standardized for most states through the adaptation of the Uniform Commercial Code.
To have a binding and legally enforceable contacts there are elements that should be existing in creating the contract. For the purpose of giving you generic information, here are the elements of a contract:
1. An Offer – One party must promise to do or refrain from doing some specified thing in the future, conditioned on an act, forbearance, or return promise given in exchange. Offers must contain sufficient terms, such as price, quantity, quality, time and place of delivery, in order to determine the specific obligations to be created.
2. Acceptance – The agreement by one who receives an offer, by express act or implied conduct, to the terms of the offer . Acceptance is an offer recipient’s agreement to perform according to the terms of the offer, and the act of acceptance of a valid offer creates a binding contract.
3. Consideration – Something (such as an act, forbearance or a return promise) that was bargained for and received by each party to a contract. Consideration must have a value that can be objectively determined. For example, a promise of love or affection is not enforceable because of the subjective nature of the promise.
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