There are a lot of contracts that exist and each of them is being used on certain things where they prove to be important. A contract is an agreement or an arrangement between two or more parties about something of interest. A contract could either be a written or spoken arrangement concerning employment, business, sales, tenancy, and many more. Oftentimes a contract is defined as a legally binding agreement that is enforceable by the law. But even with that being said, there are still a lot of fraudsters who make up contracts just for the sake of having one.
When making a legal contract, one should have knowledge about what it is and the things that need to be taken cared of when making one. In-depth knowledge about contracts is advantageous as one can find alternative ways of getting away with any loopholes associated with every contract. Some people would consult professionals in the said field so as to make an effective and advantageous contract. Although it may be necessary, it is not ultimately a must as it is not all the time convenient.
In this article, we will provide you with essential information, tips, and legal contract templates and samples that will definitely be of great help to your contract-making needs. Each sample has been carefully selected to make sure that you find what you need. They are not only easy to download and use, but they are also convenient.
Sample Contract Agreement
Sample Employment Agreement Contract
Partnership Agreement Contract Template
Business Contract Template
Construction Contract Template
Extension of Lease Agreement Contract
Why Do We Need a Contract?
A contract can be written and spoken and they are both enforceable by the law. It doesn’t really matter if there is a record of it or not, as long as it is a valid contract. The only problem with oral or spoken contracts is in providing the terms and conditions that it covers. This is the reason why written contracts are more preferred than spoken ones. Unlike an oral contract, a written contract has all of the terms and conditions stated in it. Regardless if it’s a written or spoken contract, it is still necessary to have one. That is why you should know why a contract is needed.
- A contract provides a record of the transaction that both parties have agreed upon, which includes the terms and conditions, and certain responsibilities that are associated with it.
- A contract is a legally binding agreement and it binds all of the parties who are involved in it. This means that whoever violates any of the terms and conditions will be facing the agreed upon consequences.
- Contracts are specific and provide a time frame on how long the said agreement will be. This is important as each of the parties involved will know when to renew their contracts if they need to.
- A contract provides security to all of the parties involved in situations where one party fails to perform their part in the contract or backs out from the said contract.
- Business contracts allow businesses to be able to have transactions that ensure they get the payment that they should get for any business deals, which is shown in sample business contracts.
Equipment Lease Agreement Contract
Rental Contract Agreement
Partnership Agreement Contract
Bank Loan Agreement Contract
Types of Contracts on the Basis of Validity
No matter what type of contract you involve yourself with, you should always make sure that it is a valid contract, unless you want yourself to be in a lot of trouble. There are five classifications of a contract that is based on validity and they are valid, void, voidable, illegal, and unenforceable contracts. Having knowledge of these classifications will help you understand more about contracts. Each of the mentioned classification is discussed below.
- Valid – A contract is considered to be a valid contract if it is enforceable in the court of law. To be deemed as valid, it should include the essential elements of a contract, such as legal obligations, lawful obligations, free consent, and so on.
- Void – A void contract is the complete opposite of a valid contract where it lacks any of the essential elements of a valid contract, such as free consent, legal obligations, lawful obligations, and so on. A void contract is not enforceable in the court of law.
- Voidable – If a person or entity has been forced into a contract by another person or entity, the contract they are involved in is called a voidable contract. A voidable contract happens when free consent is not considered in the contract. A voidable contract is made under physical or mental pressure.
- Illegal – It is a contract that is made or created in unlawful ways.
- Unenforceable – Legal formalities must be properly fulfilled because if they are not fulfilled they will be considered as unenforceable contracts. It will not be considered valid unless it is able to fulfill the required legal formalities.
Now that you know about these classifications, you should be able to identify the type of contract you would be in. You should also be able to know if the contract is valid or not.
Sample Non-Disclosure Agreement Contract
Real Estate Contract Agreement
Contract of Employment
10 Essential Elements of a Valid Contract
It is now easy to get access to contract templates and samples thanks to the help of the Internet and online websites who provide free online downloads. Because of this, there have been a lot of fraudsters who make use of these contracts to convince people that they are legit. How can you avoid getting into a fraudulent contract? Well, here are 10 essential elements that you should look for to make sure that you are getting yourself into a valid contract.
- A contract consist of two or more parties that agree to certain terms and conditions. In every contract, there will always be a party who is making the offer and a party who accepts the offer. This essential element is called offer and acceptance. A contract is not possible without it. Once the offer has been accepted it becomes an agreement.
- The parties who are involved in a contract must have the intention of creating a legal obligation or a legal relationship. This means that they must have the intention to go to court if any of the parties do not do what they promised to do.
- To make a valid contract, such as a lease contract, there should be consent from both parties. Free consent is obtained when something is not induced, coerced, misrepresented, and influenced by false information or mistakes.
- In every valid contract, there should be a meeting of the minds, otherwise called a consensus-ad-idem. This is an essential element because both parties should agree to the same things in a contract.
- The parties involved in a contract should be competent or capable of joining the said contract. This signifies the competency of each party. A person who is competent to enter into a contract is as follows:
- A person who is of legal age
- A person having a sound mind or no mental disabilities
- A person who is not declared or deemed to be disqualified from entering into any contract that is subject to the law
- A valid contract should not be one that has been expressly declared by the law to be void. If this happens, the contract will not be enforceable by the law, thus it is by no means legally binding.
- There should be a lawful consideration or what is known as something in return. If a contract does not offer something in return then it cannot be enforceable by the law and will not be a valid contract.
- Another essential element of a valid contract is a lawful object. Unlawful objects are considered to be something that is forbidden by the law, against any provisions of the law, one that is fraudulent, causes damage to person or property, and if it is deemed immoral or against public policy. If this is the case, it cannot become a valid contract.
- A contract must comply with the legal formalities that are required by the law. If these legal formalities are not complied to, the said contract cannot be enforced by the law. Thus, it will not be considered as a valid contract.
- A contract or an agreement should be done in a way that is certain and possible. If it is something uncertain, impossible, or one that is vague, it will not be considered as a valid contract.
So the next time you get into a contract, make sure that these essential elements are included so that you can make sure that you won’t get yourself into trouble. These essential elements are guaranteed to help you determine whether you are entering a valid and legal contract or not.
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