How Do You Create A Legally Binding Contract?
In today’s economy, it is a likely possibility that your family or friends may need a loan. While you may want to help, you should also protect your interests. If you are not able to give the money or services away, it is important to have a written contract. Here are the steps to ensure that the agreement is legally binding. Two essential elements in a contract are: -Agreement between all parties on the terms -Explicit identification of services, goods, or money to be exchanged or paid All parties should have a copy of the written contract. Oral contracts are difficult to prove and sometimes memories are faulty. The contract should have a date of when the exchange should be made. If there is a loan, you must specify how the loan is to be repaid. For instance, if someone borrows $500 and agrees to pay $100 a month, they must abide by those terms. If they deviate in any way, it would be considered a breach of contract. Include interest terms if applicable. List acceptable remedies if th
