There are a couple of reasons to write a contract: One is that you may have to, and the other is that it is often a good idea. A contract requires four things: an offer, an acceptance, consideration, and legality (do not make a contract to do something illegal). The Statute of Frauds requires that certain kinds of contracts be in written form and signed by those bound by the contract in order to be enforced. These include: marriage, contracts that cannot be completed in one year, land transactions (real estate contracts), executor contracts, goods, and surety. (They can be remembered with the mnemonic MY LEGS.) Just because a situation does not require a written contract, you may want to have one anyway. If you are shooting the breeze about doing business together with someone, go ahead and write it down. Then you both have a record to refer back to, and specified remedies if there is a breach of contract. Furthermore, if you do not understand the terms of a contract, find an attorney who does, and who can explain them to you. Do not just rely on the other party’s lawyer, but get your own legal counsel who […]
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