Businesses rest on the foundation of contracts that built them and sustain them.
Trust Lovelace Law, P.C. for contract creation, revision, and negotiations that keep your best interest in mind.
Contract law is the section of federal law that deals with agreements between people or organizations. The reasons to enter into a contract are extensive: you may be hosting an event, hiring a consultant, or selling a portion of your business. Without contracts, your agreements can easily fall through and lose your business money – with little or no available legal repercussions.
The Rules of a Contract
When creating a contract, it must fit a set of basic rules in order to be enforced as a legally binding contract. The two most important elements needed are:
- Agreement of both parties
- Exchange of something of value between parties
- This could be money, goods, services, etc.
Another common rule that applies to contract validity is that a contract must be in writing. Depending on the state, written contracts are required for any agreement that will last longer than a year. Even though it may not be legally required by your state, it’s always smart to have physical copies of business agreements in case anything were to go wrong.
If a party does not follow the legally binding contract, it can be considered a breach of contract. This allows you to take the disagreeing party to court to have your contract law attorney and a judge determine a fair solution to the issue. The party that is successful either in court or outside mediation may receive specific performance. This is a court order that makes the other party hold up their end of the agreement.
They can also be held responsible for:
- Compensatory Damages
- Punitive Damages
- Nominal Damages
- Liquidated Damages
- Cancellation and Restitution
However, there are a few common defenses to contract enforcement. If you are going to file a lawsuit against the breaching party, make sure that the contract or party does not fall under one of these categories:
- Lack of Capacity – Party must have the ability to understand the contract they are agreeing to
- This could apply to a minor or someone with a mental disability
- Undue Influence, Duress, Misrepresentation – When the party wouldn’t have agreed to the contract without the influence of another, due to duress, or misrepresentation of the other party
- Public Policy and Illegality – When the contract requires a party to break the law
With all the details that go into forming and enforcing a contract, it is important that small business owners have a basic understanding of contract law and hire an attorney to manage the critical details.
Lovelace Law, P.C. has represented cases from parties in multi-million dollar partnership ventures to a couple attempting to purchase their first home. We are experienced negotiators and will help you get the best possible result. This experience will allow us to provide you with the knowledge that you need to protect yourself while contracting.
Lovelace Law, P.C. has specific experience in drafting, editing, and enforcing the following types of contracts:
- Purchase of a business
- Sale of a business
- Real estate purchase
- Mineral lease
- Mineral purchase
- Lien waivers
- Lien enforcement
- Government contracts
- Employment contracts
- Covenants not to compete
- Oral contracts
- Construction contracts
- Roofing contracts
- General contracts
Contract Attorneys in Fort Worth, Texas
Whether you have a contract that needs reviewing, you are in the middle of a negotiation and need advice, or if you need assistance starting the contracting process, please contact us at 817-953-9656 to schedule an appointment with an attorney. The initial consultation is free of charge, and we are happy to answer your contract law questions.