The Empty Dotted Line: What Happens When the Contract is Not Signed?
You own a manufacturing business. You spent a good part of last year putting together a private branding and distributorship agreement with a new customer and a new distributor. Most of it was over email. Now the distributor is not doing its job. You pull the contract, and your stomach sinks when you realize the customer never signed it. Is the contract valid? Can you sue the distributor? Often, the answer is yes. Contracts are usually formed by signing, but unsigned c
What HAS to Be in My Contract?
Contracts do not need to contain much “magic language” to be valid, but they do need to name the parties, be signed by both parties, and the price needs to be stated or determinable. There needs to be an offer and acceptance of that offer. In addition, both sides need to give “consideration,” which is the exchange of something of value. Usually, one party promises to provide a good or service, and the other side promises to pay for it. Sometimes one party offers not to do som
Does My Contract Need to Be in Writing?
While oral or verbal contracts are often enforceable, they are not recommended. It is virtually impossible to prove the terms of a verbal contract, which invites trouble when things go sour with vendors, employees, contractors, or business partners. Written contracts help clarify what the terms of the agreement are, make sure both sides are in agreement, and give legal protection in case one party doesn’t live up to its obligations. Contracts relating to real property (lease