Ties that Bind
One of the key elements of a binding contract is that each side must have the capacity to enter into it. Those with impaired capacity, such as a mentally impaired person, may not be held to the terms of a contract. There is also the element of consideration, which means that, if one side is to be held to the contract, the other must give up something in exchange. Neither side can have a free way out or the ability to obtain something of value without providing something in exchange. Finally, there must be mutual assent, or meeting of the minds. This means that each side must be clear as to the essential details, rights, and obligations of the contract. All businesses inherently deal with contracts, even if they are unwritten, as with many transactions involving goods or services. Since a contract is a legally binding agreement, and even an honest contractual mistake can cause serious problems, it is important that small business owners have at least a basic understanding of contract law. Pruitt Law Offices emphasizes transactional legal services including Corporation/LLC set up, Estate Planning, Real Estate, Elder Law, Probate, Guardianships, and Family Law. Please call 262-633-8301 to schedule an appointment at 731 Main St. Your partners for professional service.