21:42
Faizan
Businesspeople need to make certain that their contracts are clear and meet the minimum objectives of enforceability. The only reason to enter into a written contract is to make it enforceable in court. Usually lawyers provide the client with this service. And the advice of a lawyer is essential in most situations. Here is a simple checklist to make certain that a contract contains the minimum of critical clauses:
1. Party Names. Make certain that the person or entity is clearly identified with an official address. If it is a corporation or another type of entity, check out the State of Incorporation and the official address. Identify the role of the Party ( "Seller" or " Buyer"). Precision in this step is essential.
2. Consideration. All contracts must exchange consideration. Usually, the exchanged considerations are the respective terms and conditions. But the Agreement must clearly state what the mutual promises of each party are.
3. Terms and conditions. To be enforceable, the agreement must clearly define what each Party will do in the transaction and what the rules set by the parties are:
a. Exchange. If the agreement is to exchange goods or services, the Agreement must say so clearly and specifically.
b. Payment. If the agreement requires payment terms, those terms must be outlined specifically and clearly.
c. Duration. Specify how long the agreement will last.
d. Termination: Specify how the agreement can be terminated, by whom and for what clear and specific reasons.
e. Writing. Specify that the Agreement is the only agreement between the parties on the subject and that it may not be amended orally, but only in writing, signed by both parties. Make certain that both parties agree that there are no oral agreements.
1. Party Names. Make certain that the person or entity is clearly identified with an official address. If it is a corporation or another type of entity, check out the State of Incorporation and the official address. Identify the role of the Party ( "Seller" or " Buyer"). Precision in this step is essential.
2. Consideration. All contracts must exchange consideration. Usually, the exchanged considerations are the respective terms and conditions. But the Agreement must clearly state what the mutual promises of each party are.
3. Terms and conditions. To be enforceable, the agreement must clearly define what each Party will do in the transaction and what the rules set by the parties are:
a. Exchange. If the agreement is to exchange goods or services, the Agreement must say so clearly and specifically.
b. Payment. If the agreement requires payment terms, those terms must be outlined specifically and clearly.
c. Duration. Specify how long the agreement will last.
d. Termination: Specify how the agreement can be terminated, by whom and for what clear and specific reasons.
e. Writing. Specify that the Agreement is the only agreement between the parties on the subject and that it may not be amended orally, but only in writing, signed by both parties. Make certain that both parties agree that there are no oral agreements.
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