The Standard Anatomy of a Contract
Contracts can vary considerably in their complexity due to the nature of the transaction between the parties. The standard anatomy of any contract must include the basic elements of an enforceable agreement.
Other People Are Reading
-
The Agreement
-
A basic enforceable contract involves an offer, acceptance of the offer and consideration. For example, "I will pay you $20 to cut my lawn," is an offer. "I will come back in an hour and do it," is an acceptance of the offer. Consideration is a "bargained for" exchange where both parties give up something of value in return for something else.
Basic Clauses
-
A basic contract can include a variety of clauses intended to document the intentions of the parties. A common clause is a merger and integration clause that specifies that the written contract signed by the parties represents the entire agreement between the parties. Other clauses may provide for mediation in case of a breach of contract or a disagreement. The parties may include a choice of law clause that sets forth what state laws govern the agreement.
-
Written Contracts
-
Some contractual agreements are required to be in writing to be enforceable. Contracts that are required to be in writing include contracts involving real estate or for the sale of goods exceeding $500 in value.
-
References
Resources
- Photo Credit contract 20309 image by pablo from Fotolia.com
