Have you heard the saying, “If it’s not in writing, it didn’t happen?” As the phrase implies, oral agreements can be difficult, if not impossible, to prove. To best protect your business, all agreements should be put in writing.
Unfortunately, many businesses learn this lesson the hard way.
Written contracts, even if you are doing business with people you consider friends or family, are key to ensuring that there are no misunderstandings about what each party expects to take away from the agreement.
Even a short, hand-written agreement is better than nothing. Here’s what you need to create a binding contract:
- All parties must agree on the major issues (one party has made an offer and the other has accepted it).
- The parties must each give and receive something of value (this is known as consideration). The consideration may be money, services, goods, etc.
Finally, there are some contracts that must be in writing in order to be enforceable. For instance, state laws often require written contracts for real estate transactions or agreements that will last for more than one year.
How We Can Help
Before entering into a contract, you should always consult with an experienced business attorney. Bailey Law Firm can help you achieve your business goals, while also minimizing your liability. Contact us today to schedule a free consultation at 832.510.2900 or click here to contact us online.