What Are the Basics of Contract Law?

What Is Contract Law?

Every business, whether small or large, has had to deal with signing contracts and contract law. A contract is a legally enforceable agreement between two or more parties that enforces an obligation to do or not do certain things. Contracts are very common between two or more businesses, which makes contract law a huge importance in the basics of business law. Parties that are entering a legal contract must be qualified competently, and there must be a mutual agreement by all the parties on the commitments being made.

Why Should My Business Use Contracts?

Contracts are used to enforce a certain promise or guarantee between two businesses; this binding agreement will help both businesses run more smoothly. To be even more legitimate, businesses will create written contracts, which can be used in transfers of real estate, large financial transfers, or multiple year-long contracts. You can write your own contracts, or you can hire a contract or business lawyer to write it for you.

What Laws Govern Contracts?

The laws of the state where the contract was made will determine which laws are applied. The majority of business and employment contracts are controlled by the state’s common law. A state’s common law is constantly evolving, and is usually made from different court decisions over the years. Disputes can arise over contracts, however, especially in the business world. Breaching a contract means that a party failed to fulfill their end of the bargain relayed in the agreement.

If you are creating, buying, or selling a business, it’s important to know these rules involving contract law. If you are involved in a legal dispute with your contract holders, or you believe that you or someone else has breached a contract, the lawyers at Gelman Law can help. Don’t hesitate to contact a business law attorney to settle your business and contract disputes.