Contracts

What makes a contract valid and binding?

Parties must be Capable of entering into a contract. Generally a contract is not binding on a party unless they are at least 18 years old and are not mentally impaired. However, it may be possible for a minor to enforce a contract against an adult. Note that contracts with minors for food, clothing, and shelter may still be enforceable regardless of their age. Furthermore, contracts with minors that continued to be acted on by the minor after turning 18 may become enforceable.

To get something you have to give something.  Each party must receive Consideration, that is, each must gain  some benefit in the deal.  Most often there is an exchange of money for goods or services, but there are other kinds of things a party can give as consideration, such as making a promise to do something (or not to do something) or to give up a right or valid claim are also valid forms of consideration.

There must also be a Meeting of the Minds.  Each party must know and agree to all of the details of the contract.  Although parties can enter into oral contracts, it is always better to write down all of the details, including the rights and duties of each party. Contracts can be found invalid if there is a material mistake in the terms, or if it is found that the parties were actually talking about different things.

If you have questions, give me a call at 713-893-8087, or use this form.