Components of a legal contract

Components of a legal contract

| Jan 13, 2020 | blog, Business Formation |

Individuals and companies in Georgia and other states may generally enter into written or verbal agreements with other parties. In many cases, contracts are bilateral in nature. This means that both parties have made some sort of promise to each other. For instance, a person who hires a contractor agrees to pay for services rendered when a job is completed. In return, the contractor agrees to perform services in a timely and competent manner.

Contracts that call for a person to perform an illegal act are not valid. Therefore, a failure to live up the terms of the agreement would not represent a breach of contract. A murder for hire or a drug deal could be examples of agreements that are not enforceable whether they are made verbally or in writing. If a person or entity is forced to sign an agreement under duress, a contract will likely be invalidated.

All parties to a contract must be considered competent at the time that it is signed or otherwise goes into effect. An individual who is not of sound mind, is a minor or is impaired by drugs or alcohol when a deal is reached is typically not competent to agree to anything. If a contract is breached, the victim of the breach may sue for damages or seek other types of relief.

Individuals who are seeking to enter into business contracts may want to have an attorney help negotiate those deals. At a minimum, it may be a good idea to have an attorney review an agreement before it goes into effect. This may help a person confirm that a deal contains reasonable terms that the other side is likely to adhere to. If necessary, legal counsel may help to resolve contract disputes that arise.