Updated on October 30, 2023
A contract is an agreement between two or more parties where one party has to make the offer while the other party accepts it. A contract often refers to a written document nevertheless, a contract can be made orally or even by conduct. However, some contracts require to be in writing to be legally enforceable. It is a must that there should be an offer made and that offer has to be accepted and there has to be an exchange of value between parties known as consideration. If any of these essential elements are missing a contract will not be legally binding unless the courts invoke and make the agreement valid. A contract can create legal obligations between the parties, so it is vital that all the necessary information is included in the agreement to protect the parties and to ensure fairness.
Forming the contract.
If you are creating a contract for goods or services, make sure that the contract is legal and enforceable. Know all the elements to create a legal contract. The basic requirements for all contracts are an offer, acceptance of that offer and sufficient consideration. If you want to make a contract, make sure that you are fully aware of these elements of making a contract. It is, however, wise to make a written contract rather than an oral one because written contracts are easier and could be easily understood. Contract lawyers Sydney could provide you with more information on how to make a valid contract. When you draft the contract get advice from your solicitor and discuss the necessary details with the other party that you are making the contract with.
Ensure all the parties are in agreement.
Before you make the contract make sure that all the parties agree on the terms and conditions of the contract. To minimize the risk that could occur, protect your business interests by creating a well-drafted term of the contractual. If one party breaches the contract by usually not performing the obligations exactly as agreed upon. Breaches of contract usually involve debt recovery for which reputed debt recovery lawyers will give you the required legal advice in order to get remedies that are available for a breach.
Check the details of the contract.
Double check all the details in the contract. You and your solicitor should both go through the contract and see whether the terms are exactly the terms that the parties already agreed upon. If the contract contains misleading or incorrect information, it could be considered voidable. Therefore, present information clearly as possible.