Whether you are just designing the structure of your small company or you have been in business for some time, it is critical to ensure your business contracts are legal and valid. In you day-to-day business, you may be involved in creating and accepting a number of contracts. Contracts are initiated to document that a transaction has taken place. Both verbal and written contracts may be valid depending on the circumstances of the transaction.
One of the most important factors to ensure a contract is valid is that all parts of the agreement are accepted by both parties. For example, if you are looking for a company to assist you with marketing, they may offer you a contract describing the terms of the services they offer, as well as how much they will charge for those services. If you accept, you will sign the contract and allow the company to begin the work. If you challenge any of the terms listed in the contract, you may wait to sign and further negotiate the terms. If either party does not accept the terms of the contract, the document will not be signed and is not considered valid.
When creating a contract, you may have an expiration date or a date when the offer or terms of the contract are no longer valid. It is best to get everything in writing in the case that one of the terms is not completed according to the agreement. In this case, a breach of contract may occur and you may pursue legal action.
This information is intended to educate and should not be taken as legal advice.