A business agreement simply states the exchange of promises between two or more parties. Before signing a contract, a business should hire a trusted attorney to make sure their agreement abides by-laws and includes all terms. In addition, a lawyer will be able to provide advice to ensure each party is getting a fair deal. Consider these reasons to have a lawyer read over a business agreement.
Ensure Agreement is Enforceable
An agreement must meet specific criteria to make it enforceable – an offer, acceptance of that offer and mutual consent. The exchange must bring something of value to both parties and cannot be unfair. All parties involved must understand that the contract is legally binding, therefore, people who are not of age or not in a sound state of mind cannot make a valid contractual agreement.
Avoid Conflict with the Law
Complying with the law should be a top priority when constructing a business agreement to avoid major legal problems. Companies that are in an industry with high regulations have to be careful in making sure they are following all laws and considering them in the agreement. Every state, and even county, has different rules, and it’s important to have a small business lawyer in that specific region to ensure all local laws are being followed.
There are instances in which oral agreements are enforceable. Although most oral agreements end in a written contract, it is best to know which types must have a written contract to be valid. Agreements that involve the sale of land, sale of goods in an amount more than $500 or debt obligations need to be written.
All Terms Are Included
The average person may not understand certain legal jargon that could be included in an agreement. A lawyer trained in business legal services will be able to make sure all terms of the agreement are added, as well as break down any confusing wording so the client fully understands. Clarifying everything ahead of time can lead to fewer headaches in the future.
In addition to making sure all terms are added, a lawyer will make recommendations of terms that should be added to the agreement to make things fair. If an agreement lacks “consideration,” meaning a fair exchange with something of value, a contract will not be formed.
To ensure your business agreement is complete and valid, contact Dan Burke, the business attorney San Antonio has trusted with legal services for more than 15 years.
