Whether in your personal life or as part of business or work, you have probably entered into a binding Legal Agreement. When entering into a legally binding contract, it is important to understand how the agreement process works to ensure your obligations and expectations are appropriately documented.
Legal Agreement Requirements
Whether you want to ensure a third party is bound to their promises, or you want to be wary of what you are committing to, it is important to understand when a Legal Agreement is binding. Contract laws govern when a Legal Agreement is binding, and they generally require:
- Offer and Acceptance: There needs to be a clear offer made by one party and unambiguous acceptance by the other party.
- Consideration: Something of value (consideration) must be exchanged between the parties.
- Signature: Some types of agreements may require a signature.
Failure to ensure any one of the required elements of an Agreement is in place can result in an Agreement that is not enforceable.
Types of Legal Agreements
While it would be impossible to name every variation of Agreement, some information about common forms of Agreement are included below:
- Non-Disclosure/Confidentiality Agreement: Helps protect confidential information
- Entertainment Contract: Specify actions to be performed by a performer and conditions pertaining their performance
- Employment Agreement: Sets the terms of an individual’s employment; similar agreements include independent contractor agreements and non-compete agreements
- Licensing Agreement: Allows a third party to use intellectual property, often for payment of a royalty or other fee
- Lease Agreement: Establishes the rental terms between a tenant and landlord
- Promissory Note: Memorializes the terms around a loan, including repayment, interest, and penalties
- Bill of Sale: Documents the sale of personal property
- Purchase Order: Commitment to purchase items at an agreed upon price point
- Agency Agreement: Establishes the job scope and payment terms for an agency
- Franchise Agreement: Outlines the relationship and terms between a franchisor and franchisee
- Settlement Agreement: Documents the agreement between the two parties to resolve a dispute
No matter the type of Legal Agreement, it is likely to include a variety of terms, including indemnification, warranty, choice of law, and many more. To ensure the most favorable terms are included in your Legal Agreement, contact us today.