How to Make a Contract Legally Binding
A contract provides an agreement, whether written or verbal, to perform or not perform a specific action. The website Entrepreneur states that not all contracts are in writing; however, every contract must contain essential parts that make it legally binding. Agreements sometimes go awry, so making sure your contract is a legal document provides a strong backing if legal action is necessary.
Other People Are Reading
Instructions
-
-
1
Create your contract with the required elements for a legally binding contract--offer, acceptance and consideration. Also, include parties of legal age who are considered competent by state and federal regulations. The offer provides a proposal for a deal. The acceptance is the agreement to the terms of the contract by the person to whom the offer is made. The consideration(s), which must be rightfully owned by the parties listed, is the money, service or property that is the benefit received by the agreeing parties.
-
2
Ensure all parties listed in the contract are the rightful owners of the consideration(s) or object(s). For instance, if the contract is for the purchase of property, make sure the property is deeded in the name of the person listed on the contract.
-
-
3
Review the competency laws for your state and make sure all parties are considered competent. Competency includes age and mental status. Anyone who is deemed mentally unstable or disabled, and who did not understand he entered into a contract, may have it overturned.
-
4
Make sure the individuals listed in the contract are of legal age. The American Bar Association states that most states consider individuals under the age of 18 minors and not legally liable for a contract.
-
1
Tips & Warnings
If possible, have a written contract. Include a witness signature line and have the contract notarized for added proof of the agreement.
References
- Photo Credit firma contract 10509 image by pablo from Fotolia.com
