Writing a Legally Binding Contract
Businesses are built on contracts. When you are selecting a business location, hiring employees, entering into a partnership, or conducting nearly any major transaction, you will be signing contracts. For obvious reasons, every business owner and manager needs to be familiar with contract law. In this article, we will begin with the basics: the components of a legally binding contract.
Writing a contract may be relatively simple, but complications can arise when you need to enforce it. If you need any advice about contract law, including representation in a legal dispute, call the Des Moines business lawyers of LaMarca Law Group, P.C. at (877) 327-2600.
The Elements of a Contract
Most contracts will consist of the following basic components:
- The identities of the parties involved. A contract must be between at least two people, although more than two may participate. The contract should make it very clear who the parties are; some include social security numbers, addresses, or other identifying information.
- A clear description of the deal being made. The person offering a product or service should describe exactly what he or she will do or provide. The person accepting this service should be clear about payment and any other requirements he or she must meet.
- Provisions for disputes or other problems. The contract should discuss what penalties will be incurred by a party who fails to honor it. For example, a service provider who does not receive payment may cease work and file claim against the other party.
- The location, date, and time of signing. The parties should sign the contract before a third-party witness, preferably an official notary.
Of course, some contracts are more complex than others. Our experienced Des Moines contract lawyers can guide you through the process of drafting any kind of business contract you need.
The Des Moines contract attorneys of LaMarca Law Group, P.C. can provide useful information during contract formation and efficient representation during a contract dispute. Contact us today at (877) 327-2600.