Contracts 101

What is a contract?

A contract is a promise between two or more people or entities about what they agreed to do. The contract defines the respective rights and obligations of the parties to that contract.

Why do I need a contract?

Even the best of friends and closest of families disagree when they do business together. Creating a binding legal agreement helps you to prevent potential future problems and ensures that all parties fully understand what they are agreeing to do when they contract.

What are the key elements of a contract?

A contract must be about something - it's important to expressly define the details concerning the agreement of the parties. A contract also needs some consideration - a reason why the parties are entereing into a contract with each other. For example, when you sell me your golf clubs, I pay you $300 and the money is consideration for the sale. Finally, all parties to a contract must be lawfully allowed to enter into a contract. Minors may not typically contract (there are some exceptions).

Disclaimer: The content on this page is not legal advice. It is offered for informational and educational purposes.