A contract is essentially an arrangement between two people that forms a legal commitment obligating both of them to carry out specific duties. Each person is legally compelled to execute the designated task outlined in the contract like making a payment or producing goods.
In order for a contract to be binding, each person has to contribute something of worth. This is known as consideration.
A contract is able to be applied to many different types of transactions, such as the provision of services, or the sale of goods or land.
Contracts often have very weighty legal and financial consequences. It is essential that you examine any contract thoroughly before you agree to enter into it.
No matter if you are signing a contract or creating one, you will have more confidence in the whole procedure by following these simple steps when it comes to reviewing a contract:
Read the Entire Contract
You should never blindly click “Accept” when you come across those headache-inducing Terms and Conditions. Contracts are often extremely long and might contain numerous complicated clauses, but if you taking the time to read over what it says, you won’t be overlooking any critical information.
Be Clear With Your Descriptions
The obligations stated in the contract, along with the offer, have to be precise and detailed. If you were selling a car, for instance, you should have included a detailed description including the color, make, model, year, etc.
Understand and Clarify
Be absolutely certain that you understand your part of the contract. If there is a phrase, jargon, or duty that you do not fully understand, you need to ask questions. It is also a good idea to make sure the other person involved in the contract understands their obligations and duties according to the contract.
Pay Attention to Acceptance Details
Some contracts come with an acceptance date. Be sure to reject or accept the contract before it expires.
Know Who You Are Dealing With
It doesn’t matter if you are entering into a partnership, leasing a property, or just selling or buying a good, you need to verify the identity of the other person prior to signing your name on any legal document.
Think Before You Sign
Being aware of the essential components of a legitimate contract is a move towards escaping legal conflicts if you enter into one. Talk to people you know and trust, get opinions, and familiarize yourself with the fundamentals of any applicable law before you enter into a legally binding agreement.
Our qualified California business contract attorneys realize that signing your name to any document can be intimidating, but signatures are mandatory when creating a legitimate contract.
Understanding how, when, and where you should sign your name could ease some of your anxieties when it comes to putting your name on a legal document and will help make sure that the contract in carried out as intended.
An experienced contract attorney at Leiva Law Firm can answer any questions you may have about a contract that you are thinking of entering into. To schedule a free consultation with a California business attorney, call (818) 519-4465 today. Our attorneys speak both English and Spanish.