When an Illinois business owner enters into a contract, he assumes that it is valid and legal. A contract is a legal agreement between multiple parties. It usually details specific terms between the parties and ensure that everyone is in agreement.
Contracts help spell out potential problems before they become a dispute and can settle these in advance. Although there are many types of legal contracts there are features that can make it invalid. In general, the following are the basic elements which make a contract valid.
An offer and an acceptance
A contract should describe what service or product is being provided and both parties must accept the terms and its conditions.
An exchange of value
A contract needs to spell out a price or something of value that is transferred between the parties. This is known as a consideration and can be money, benefits, rights, or a promise to provide these in the future.
A contract needs to have terms that are legal in state and federal law.
Everyone involved in the contract need to have capacity
All parties who are entering into an agreement need to be older than 18 and have the mental capacity to understand and fulfill their obligations. They also must accept the terms of the contract at their own free will.
Beneficial to all parties
A contract needs to have a benefit to all parties who are involved. Everyone should receive something in the deal.
A legal professional who specializes in business law can help their client with any contract issues. They can help draft a contract, review a contract or defend their client’s legal rights when it comes to contract issues. A business contract can be complicated so having a legal professional who understands Illinois law can be helpful.