What makes a contract binding in Florida?
Mascotte, FL—In order for a contract to be binding, or legally enforceable, it needs to contain the basic elements which include1:
- Mutual assent. Mutual assent is when all parties involved have come to an agreement on something which can be “expressed by a valid offer and acceptance,” according to the Legal Information Institute. For example, a business owner and a manufacturer may sign a contract when the manufacturer decides to produce products for the business at a cost both parties are content with.
- Adequate consideration. All parties involved in the matter should have the opportunity to consider the terms of which should be fair.
- Capacity. Capacity refers to a person’s ability to sign a contract. For instance, an individual must have the authority to sign a contract as well as a sound mind.
- Legality. Legality refers to the legal agreement that both parties have agreed to.
Is a contract enforceable if one party doesn’t understand one or more terms outlined in it?
If a contract contains all the required elements, then it can be enforced. If a business owner signed a contract without reading it entirely or signed despite their inability to understand one or more terms outlined in it, it is still enforceable.
Anyone who signs a contract is expected to understand the terms outlined in it, of course, unless the capacity element is not met. Now, because contracts are often lengthy and confusing to understand, business owners are urged to hire a Mascotte, FL business law attorney who can help them interpret the document before they sign. This way, they are aware of what they are agreeing to.
What if one party breaches the contract?
If one party breaches the contract, the other party(ies) can take them to court where the document can be enforced. For instance, if one party was hired to perform a task and they failed to complete it after accepting payment, the party that paid could take them to court and request to be reimbursed as well as seek compensation for their pain and suffering.
A Mascotte, FL Business Law Lawyer Will Ensure an Individual Understands a Contract Before They Sign
Once a contract is signed, the signature can be difficult to retract. Therefore, before a business owner signs a contract, whether it is with another company or manufacturer, they should have a Mascotte, FL business attorney review it with them first to ensure they understand it entirely. Legal Counsel P.A. is a business law firm located in Florida that is available to help business owners draw up contracts as well as understand the ones they intend on signing.
Legal Counsel P.A. is located at:
189 S. Orange Avenue, Ste. 1800
Orlando, FL 32801
Email: [email protected]
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