This article goes over the basics of contracts. It provides tips on how to successfully negotiate a contract, and how to draft a contract. After reading this article you will know what steps to take to orchestrate your own contract agreement.
Introduction
At some point in everyone’s life they enter into a legally binding agreement, whether it is to buy a car, rent an apartment, or to buy an extended warranty for an appliance. While most people will enter into dozens of these contracts during their lifetime, few people know the basics of contracts such as what laws govern contracts, when is a written contract needed, what should be included, and what happens when a contract is breached. This article will go over the basics of contracts, how to successfully negotiate your position, and how to write a good contract.
Who Can Enter into a Contract Agreement?
In the simplest terms, a contract is a legally binding agreement between two or more people of legal age. In order for a contract to be legally enforceable all parties involved have to be over 18 years of age and capable of making informed decisions.
For example, if a minor enters into a lease agreement, even if they lie and say they are 18, the landlord will not be able to take legal actions to force the minor to pay for back rent owed or even for damage sustained to the property while the minor was occupying the apartment. If however, the minor turns 18 during the lease and continues to rent the dwelling after their 18th birthday the contract becomes legally binding as the person has "renewed" the contract as an adult, and thereby indicating that they agree to abide by the terms set out in the agreement. They will then not be able to breach the agreement and they will be liable for rent payments and any damages to the property that incurs during their residency.
In addition to age restrictions on who is eligible to enter into a contract agreement, mental ability is also taken into consideration. In order for a contract to be legally binding all parties involved have to have the mental ability to enter into the contract as fully informed parties. This mean that if one or more of the parties were drunk or impaired at the time when the contract was struck then the document is not legally binding. People with mental illnesses or disorders also may not be able to legally enter into a contract without counsel or accommodations.