A contract is an agreement betwixt parties that creates certain legal responsibilities. When a contract is formed, parties agree to do or non to exercise sure things. Generally, a contract can be formed by an oral understanding or by a written certificate. An oral contract is a spoken or verbally created agreement that can outcome in legally bounden consequences. Some contracts have a specific writing requirement.

In full general, to create a written or oral contract, there are certain legal requirements In general, there are v required elements to create any contract:

  • Legal: The contract must have a legal purpose. You cannot create a contract for an illegal purpose. For instance, you lot cannot create a contract to hire a hitman to kill someone because murder is illegal.
  • Common Agreement: In that location must be what is called a "meeting of the minds." This ways that the parties came to a mutual understanding. One party must make an offer to another party for acceptance . There is a mutual understanding when the other political party accepts the offer.
  • Consideration: A contract must have consideration to be valid. Consideration means that each party provides something of value in substitution for some blazon of benefit. Both parties must give consideration. Consideration tin can be anything with actual value. For example, consideration tin can exist money, personal holding, or doing transmission labor.
  • Legal Competency: The parties to a contract must have l egal competency . This means that the person must sympathise that they are entering into a contract. For example, minors, the mentally incapacitated, and intoxicated individuals do not accept legal competency.
  • Purposeful: A contract will not be valid if it involves duress, mistake or fraud. Duress means that a person cannot be forced into inbound a contract against their own will. Error means that a person cannot enter into a contract accidentally. Fraud means that a person cannot exist tricked into forming a contract.

As a general rule, written contracts are easier to enforce. In fact, courts prefer that agreements be put into writing. With a written contract there is an actual document that shows what the parties agreed to. In that location are some agreements that must be put in writing in order to be valid and enforceable contracts.

An oral contract is merely spoken. This ways that in that location may exist no witnesses to the agreement. Only the people or parties who fabricated the oral understanding will know what was actually said. This can crusade issues if the parties disagree about the contract at a afterward time.

The writing requirement nether the statute of frauds is a rule that says that certain contracts must be put in writing. If the statute of frauds applies, there must exist a written contract for the agreement to be enforceable. The purpose of the writing requirement under the statute of frauds is to foreclose fraud. The statute of frauds ensures that certain types of important contracts are in written class. Written contracts are often more reliable. A written contract is a legal document and can be used as proof.

What Types of Contracts Must be in Writing?

The statute of frauds says that certain types of contracts must be in writing to be enforceable. In most states, the following types of contracts must be in writing

  • Contracts to transfer or sell land;
  • Contracts that relate to the field of study of union;
  • Contracts to sell goods that are worth $500 or more than;
  • Contracts that cannot be completed entirely during the one year after signing (based on the actual terms in the understanding);
  • Contracts involving promises to pay off another person'southward debt. These are sometimes called "surety contracts"; and
  • Contracts where an estate executor states they will pay debts from their ain personal funds.

Any of the above certain types of contracts must be in writing to be enforceable. These contracts should also include the following:

  • All basic terms and conditions of the agreement;
  • Identification of the people that are involved in the agreement; and
  • A clear statement the subject area of the agreement (for case: what goods and/or services are included).

Not all contracts need to be put in writing. Many agreements practice non involve the statute of frauds. Agreements that do not involve the types of subjects listed above are contracts that do not need to be in writing. Many agreements can be created by oral contracts. Oral contracts are frequently legally bounden. There may exist specific separate oral contract requirements and validity rules.

Who Can Write a Contract?

Nearly people and parties are legally immune to write and enter into a contract. There are iii major exceptions to this general dominion.

  • Minors: By and large, minors cannot enter into a contract. Only people or parties who are older than the minimum legal historic period can grade a contract. Usually, the minimum legal historic period is 18 years former. For instance, a half-dozen yr former cannot enter into a contract.
  • Incompetence: The people or parties to a contract must be mentally competent. Competency , also sometimes called capacity, ways that the person understands that they are making a contract and the consequences of doing so. For instance, people diagnosed with sure severe mental disabilities may not be able to enter into a contract.
  • Intoxicated: If a person or party is severely intoxicated they may not be able to form a contract. Intoxication means that the person is nether the influence of drugs or booze. Usually, the person must be so intoxicated that they practice non empathise or remember their actions. For example, if a person is extremely drunk, they may non be able to enter into a contract.

Most people tin can legally write a contract. Even though at that place are non many rules about who tin can write a contract, drafting a contract can be complicated. Contract drafting and review requires planning and at least some understanding of contract law.The average person commonly does not know contract law. Contract law can be extremely circuitous.

It is important to retrieve that even elementary agreements may require very complicated writing. For this reason, it is highly recommended that you have an chaser write and/or review any contract before you sign information technology. You practise non want to end upwardly with legal obligations accidentally because a contract was written incorrectly.

It is also recommended that you put the contract in written form. Even if the statute of frauds does not apply, written contracts are generally easier to enforce than oral contracts. As discussed, the written contract will exist proof of the understanding if there is e'er a dispute in the future betwixt the parties.

What Happens If the Parties Practise Not Follow the Contract Writing Requirements?

If the statute of frauds writing requirement applies, the parties must put the contract in a written document. Failure to follow the writing requirement can result in extremely bad consequences for all parties involved.

If the agreement does non follow the contract writing requirements, it may non be enforceable in court. In many cases, the courtroom will decide that a contract does non be. This means a court cannot resolve whatsoever disputes. If there is a disagreement, the parties may not exist able use the legal arrangement to solve the trouble. This could be very bad for you, specially if, for example, you are owed money, etc.

In some states, it may be an choice to enquire the courtroom to enforce an oral contract even though it should have been in writing under the statute of frauds rules. A court will practise this in but limited and specific situations. Situations when a court might enforce an oral contract that does not comply with the statute of frauds include:

  • Performance: Partial or substantial performance means that a party has either performed function or significant portion of their responsibilities under the contract. If one of the parties has already partially or substantially performed, a courtroom may enforce the contract against the other political party. This is based on the idea of fairness.
  • Detrimental Reliance: Detrimental reliance means that one of the parties relied on a promise fabricated by another party and was harmed because of that reliance.
  • Specially Manufactured Goods: A courtroom may enforce a contract without a writing if it involves peculiarly manufactured products or goods. The agreement must be for $500 or more, the appurtenances must be custom made for a specific buyer, and the products cannot likely be sold to another buyer. For example, this might include the sale of a peculiarly engraved slice of jewelry with the heir-apparent'south first and terminal name on it.

Do I Demand to Rent a Lawyer for Help with Contract Writing?

It is in your all-time interest to hire an experienced contract lawyer . A specialized chaser can advise you on contract writing requirements. A contract lawyer in your expanse can draft a contract for you lot and review any contract before yous sign it.

Contract law and the statute of frauds can be complicated. A knowledgeable chaser tin tell you what laws apply to your specific situation. If in that location is ever a dispute about the contract, a lawyer tin also represent y'all in court.