A contract is a legally binding agreement between two or more parties that is enforceable by law. However, not all contracts are created equal. In fact, some are not even valid.
Because laws vary from state to state, a contract that is valid in California may not be enforceable in Florida. A general contract form from your local office supply store, although properly formatted, may not fully adhere to the laws in your state.
3 Components of a Valid Contract
In Florida, a contract must have 3 essential components to be considered valid and enforceable – an offer, acceptance of the offer, and consideration.
1. The offer
An offer is a written or verbal statement by any party expressing his/her intent to enter into a contract under certain terms. It can be negotiated, re-negotiated, withdrawn or rejected at any time prior to acceptance.
Once the offer is accepted and the contract signed, you are considered a party to the contract and are obligated to perform as agreed.
2.Acceptance of the offer
When an offer is presented, all parties to the contract must fully and openly accept it. Acceptance can be in writing, verbally over the phone, or via the U.S. mail. In the latter case, the offer is deemed accepted from the moment the mail is placed inside the mailbox; not from when the recipient receives the mail.
3.Consideration
Consideration describes the value that will be given to the parties of the contract in exchange for their performance. It must be present in all Florida contracts.
There are different forms of consideration – including money, services and tangible items. Without consideration, the performances promised in your contract are merely gifts.
Doing business with valid contracts is essential to your success. Now is the time to evaluate the contracts you are relying on. Are you fully protected or leaving your business vulnerable?
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Tags: contract law, elements of a contract, Fort Lauderdale, protect your business, South Florida
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