Contracts serve as the law between the parties. The provisions of the contract dictate the duties and responsibilities of the parties. It must be carefully reviewed to reflect your real intention and agreement. Careful drafting is equally important to make sure that the wordings of the contract are clear and cannot be interpreted differently.
What are the possible defects in a contract and how can they be remedied?
Elements of a Valid Contract
A valid contract is composed of a valid cause, consideration and the consent of the parties. The cause is the reason or the object of the contract. It may be a service, a product, a settlement or a simple agreement. The consideration is the value added or the equivalent exchange for the cause.
Lastly, consent is the authorization of the parties. It is essential that all these elements are met before a contract may be deemed valid.
These are contracts that have unclear wordings, causes or considerations. A party cannot assert a right based on an unenforceable contract. The remedy here is to first amend the contract or to prove its ratification.
Ratification is the implied approval of the agreements in a contract. According to m-s-lawyers.com, seasoned business lawyers in Denver, ratifications may be orally or actual. A clear example of such approval is the enjoyment of the benefits of the contract while failing to contest its problematic provisions.
Breach of Obligations
It must be identified if the obligation is implied or is expressed. Breach or violation of expressed obligations entitles the injured party to rescind the contract. Rescinding means that the party injured may take what he has already paid in the contract. If the subject of the contract is performance of a service, an experienced business lawyer may help you file for specific performance. This will result in compulsion by the courts, forcing the other party to comply with his obligations.
You are free to draft your own contracts. Just remember that it should be clear, fair and not against public policy. Do not rush the drafting of your contracts and study the remedies available for you in case of breaches.