Written Contract: Everything You Need to Know
Use a written contract to get legal protection for every agreement you make with anyone.3 min read
2. Making a Written Contract
3. Agreements You Must Keep In Written Contract Form
4. Fulfilling the Conditions of the Statute of Frauds
5. Basic Rule Governing the Legal Contract
Use a written contract to get legal protection for every agreement you make with anyone.
Important Aspects of the Written Contract
A written contract or a written agreement is the printed document signed by both the parties involved in a deal. These parties are the lender and the borrower, the service provider and the user of the services, or the property owner and the beneficiary. A written contract gives you the protection you need always.
- Any agreement recorded in writing, called a written contract, even if it not needed, helps as a reference for the future.
- Every contract has different terms depending on what the need is and how they remain fulfilled.
- Being legally binding, the written contract is easily fulfilled.
Making a Written Contract
- Mentally sound people who have attained the legal age have the right to create a contract.
- Most average people cannot meet the needs of writing a contract. This is because even a simple contract needs good foresight and the knowledge and use of legal terms.
- A lawyer has a good grasp of the law and will help you avoid simple errors in the contract that could cost you a great deal of money and time.
This contract could include simple forms such as a handshake, a nod of acceptance, or an offer.
Agreements You Must Keep In Written Contract Form
You must put your personal deals and agreements that last for a long time in the form of a written contract.
- Sales in the real estate and property deals.
- Personal agreements that take over one year for completion.
- Deals involving money greater than a specific amount (depends on the state).
- Property transfer upon death.
- Undertaking to pay another person's debt.
- Property lease lasting over a year.
- Long-term contracts lasting longer than the life of the involved party.
- Deals that take over a year to complete.
Fulfilling the Conditions of the Statute of Frauds
Written contracts are more reliable than oral agreements. The writing of the contract must follow the Statute of Frauds. To meet the conditions laid down by the Statute of Frauds, you only need to put the agreement down in writing. This is difficult for the average person but easy for a lawyer to do. And, you must classify the contracts into one of six classes:
- Contracts involving a land sale.
- Suretyship contracts.
- Marriage deliberation contracts.
- Goods sale contracts for $500 or more under the U.C.C. Section 2-201.
- Contracts made that take over one year to do.
- Contracts involving personal funds of an estate executor who agrees to pay estate debts.
This written contract must mention the names of the parties involved. They must tell what the conditions are in the agreement and the subject matter of the contract. It must also mention any other conditions needed for the fulfillment of the agreement. Both the involved parties must affix their signature to the written contract.
Basic Rule Governing the Legal Contract
- The first and most necessary thing for a legal contract to exist is for one party to make an offer and another to accept it. You can do this in writing or orally. The offer remains open reasonably long when there is no expiration date mentioned. When you have an expiration date, you no longer have doubts about how long this offer remains open.
- When you can make an offer with expiration dates it's called an option. And usually, it costs something.
- The first response to an offer is a counteroffer. The other party starts bargaining over the price or the terms of the contract. They give a counteroffer which the first party may accept, reject, or make another counteroffer.
- When either of the two parties gets a counteroffer, they have the legal responsibility to respond to the offer. You can meet the responsibility of the offer by doing work. This might involve an exchange-of-value need that the party meets by an exchange-of-promise.
- If you revoke an offer, you must do so before the other party accepts the offer.
The exception to the revocation rule is when both the parties agree to keep the offer open for a specific amount of time. You can use the statute of limitations on written contracts for defense if you face a lawsuit. Consult your lawyer on the way to use this.
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