Many different kinds of agreements are made legally binding with the signing of a contract. These agreements, though, may not always be what you expected.
Contracts are drafted with the intent of solidifying an agreement and the expectations of all parties in the eyes of the law, but they can only successfully do this if all involved parties know what they’re signing, understand what’s written in the contract, and have ensured that every necessary element has been included to ensure an outcome that’s acceptable to them.
It’s harder to stay on top of all this without an understanding of what a contract should always include to make sure it’s fair, properly outlines your expectations, and is actually legal. You’ll learn more about that in this blog post, as well as why a contract review lawyer may be a worthwhile investment.
Making sure the agreement is legally binding
As mentioned in this previous blog post, a contract needs to be legally binding, or at least one party involved in the agreement will suffer a loss.
Every state has different rules about what constitutes a legally binding contract. A contract is only as good as how well it holds up in the face of a court challenge, so this is the most important point to remember when you’re drafting or signing one.
As the contract is being created, all parties should agree on one specific state’s laws to govern it. This is helpful for drafting a properly legal document in the first place, but in the event that a dispute takes the parties to court, this can help reduce any confusion surrounding the legality of any specific provisions of the contract.
Checking the verbiage of the contract
The phrasing used in the contract is also relevant to how well it’ll handle a legal dispute, but it also makes a big difference when it comes to avoiding one.
Many contracts and other legal agreements use a long-winded string of unnecessarily complex phrasing and legalese in an effort to specify every granular detail of an agreement, obscure the provisions included in the contract by one or more parties, or for some other purpose.
Reviewing the verbiage of a contract before signing will indicate where any part of the deal is unclear, where issues of legality may crop up, and may even give you a sense of whether it’s a good idea to enter into a contract with one or more of the other parties at all.
Including every essential element of a contract
Beyond making sure the contract is legally binding and written in clear, understandable language, you need to make sure the contract includes certain elements outlining the terms of the deal.
This doesn’t just mean including your expectations for the agreement as indicated before. A few particular things should be part of any contract before you sign, including:
The legal names of each party
Each party’s rights and obligations
Don’t sign without talking to a contract review lawyer!
Talk to the legal team at Savvy Esquires if you’re getting ready to draft or sign a new contract. There’s no better way to ensure a contract will survive scrutiny in court and offer the fair outcome you’re expecting than to have a contract review lawyer inspect it from a perspective of experience and intimate knowledge of relevant state laws. Schedule a consultation or contact us now for more information.