When it comes to practicing business law, contracts between two people or entities can be the source of many litigations and therefore the wording of the contract must be carefully considered if both parties are to attain their goals. The Mississippi Bar Association defines a contract as a binding promise between two competent parties that is enforceable by law. It must also include the exchange of something of value between these two parties.
What Makes Up a Contract?
There are two basic parts to a contract – the offer and the acceptance. The offer to do something for a fee can be one part of a contract. The offer then is either accepted or rejected by the other party. Contract law is usually a matter of the state, not federal law. And it is meant to provide for orderly transfer of rights between the two parties entering into a contract.
Business Law and Contract Construction
The contract must be constructed in such a way that the terms are clear enough to allow a court to determine what was promised. It must identify the parties involved, the promises being made, and the price to be paid by each party. In a real estate contract, for example, the developer agrees to build a home adhering to all state regulations and the buyer agrees to purchase the home when it is completed.
Differences between two parties during the contract are where many problems do occur. In the example above, did the builder promise a certain completion date? If they did, then the buyer may have cause to void the contract if that date hasn’t been met. However, the buyer may be mistaken if they thought the home would be done when other homes nearby were completed. That may be an implied part of the contract in their mind but it would have to be proven in a court of law.
The business law attorneys at Rushing & Guice have constructed many airtight contracts for their clients and have also represented many who were damaged by a breach of contract. Let their team help your business enter into well-constructed contracts that will help your business grow.