If you wish to draw up a business contract, then you have to understand how to ensure a court will uphold it should something go awry. According to the Florida Bar, the basic requirements for a valid contract are that it must have an offer and acceptance of the offer.
Of course, an offer and acceptance are only the very basic things you need for a legal contract. There are other aspects of the contract where things could go wrong and lead to issues. For example, the terms you include may contain something illegal, which would void your contract, so it is important to check over the terms.
Exchange
A valid contract also must have the exchange of something of value. For example, you give the other party a vehicle in exchange for money. If there is nothing of value exchanged, then the contract will not exist. In general, the exchange is fair and you both should agree to the terms of it.
Capacity
Equally as important is the ability of you and the other party to enter into a contract. You both must be of legal age and sound mental status. If anyone could prove either of you did not have the capacity to enter the contract, the court could rule it invalid.
In writing
It may surprise you to learn that not all legal contracts must be in writing. Oral contracts also have strength under the law, but they are more difficult to enforce, and in some cases, they are not valid. For example, real estate agreements must be in writing.
