In business, people enter into contracts all the time. And contrary to what people believe, two or more people can enter into a binding contract without anything in writing or legal language, as contracts can be oral, written, expressed or implied.
There are four basic requirements to have a binding contract:
- The agreement, also known as the offer and acceptance, between the parties involved.
- Consideration, also referred to as the promise to do something. Consideration typically requires each party involved in the contract to promise to do something or not do something, and it must be mutual.
- Parties entering into the contract must have the mental capacity to understand what they are entering into and the agreement must intend to be bound.
- The goal of the agreement must be legal.
Unfortunately, so many people fail to meet the terms of the agreement. This is why as commercial and business litigation lawyers, we recommend business professionals and business owners enter into written contracts that have been drafted by experienced attorneys to help avoid breach of contract claims.
If another party has failed to meet the terms of the contract and you have suffered losses as a result of the breach of contract, we may be able to help you recover your losses incurred, out-of-pocket costs and even attorney fees. Call the Voss Law Firm and speak with a trusted Texas business litigation lawyer at (866) 276-6179 to receive a free, no-obligation legal consultation today. Make sure you request a FREE copy of attorney Bill Voss’ book: Business Disputes – Critical Information for All Business Owners.