A business contract is simply an agreement made up of promises exchanged between two or more parties that is legally enforceable. It can be created through writing, oral statements, or even simply through the conduct of the parties involved. The content of business contracts can vary greatly depending on the type of business and the needs of the parties. However, there are different rules regarding contracts depending on the subject matter.
There are two sources of law that govern contracts: The Uniform Commercial Code and Common Law. When a business contract is made between merchants for the sale of goods, the contract is governed by the Uniform Commercial Code (UCC). If the contract deals with providing services, real estate, employment, or the exchange of goods between non-merchants, the Common Law of the local state applies. Regardless of which legal standard applies to your situation, there are some basic elements that must always exist for a the agreement to be enforceable:
If someone fails to meet their obligations under a valid contract, then the contract is breached. When there is a breach, the party responsible for the breach will be liable for damages to the non-breaching party.
There are several possible defenses to a breach. Some of the more common examples include:
Business contracts are extremely complicated by nature and the laws that govern them can be confusing. Consulting an experienced business attorney can aid you draft, negotiate, and if needed defend or contest portions of your business contracts.
Last Modified: 02-28-2018 07:44 PM PSTLaw Library Disclaimer
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