Common misconceptions about contract law

On Behalf of | Jan 13, 2020 | Contract Law |

When people create a new business, they have several different matters they have to juggle. Though contracts may be one of the last things on a business owner’s mind, they can be important, as different kinds of contracts are needed for different parts of a business. Whether contracts are meant to protect a business, or outline conditions of employment, North Carolina small business owners may have questions about how to properly draft and implement these agreements. Here are some of the most common topics in regards to contract law.

First, most people assume that all contracts have to be written down in order to be legal. However, there are certain instances where oral contracts are perfectly acceptable. That being said, it’s still advisable to have written contracts when dealing with business matters. Both parties to the agreement can clearly see the provisions and have the opportunity to question any terms. If either party decides to go to court over something relating to the contract, the court’s job will be much easier with a legal document to reference.

All contracts of any kind have several parts. The first two parts that are generally written out are the offer of whatever the contract is for, and the acceptance, which is often a signature. Contracts also require all parties to the agreement to be competent. Finally, contracts require consideration, which is the exchange of one thing of value for another. If one party involved in the contract doesn’t fulfill the terms, that is called a breach of contract and may be resolved through legal action.

Though contract law may seem overwhelming, it doesn’t have to be. Business owners or individuals with questions about how to properly create and utilize contracts have every right to consult an attorney. A legal professional here in North Carolina with experience in contract law may prove to be a valuable resource.