Material Terms of a Contract

          Any agreement for two people (or businesses entities) to do something can be an enforceable contract, as long as the contract is not for something illegal.  For instance:  “I will pay you $100 to perform songs for one hour” could be a valid contract.  Enforcing a contract means that a court can make a party pay what was owed under the contract:  If you perform and I don’t pay you, you can ask a court to make me pay you. 

            Contracts start with an offer, there must be acceptance of an offer, and agreement about the terms of the contract.  But there are several essential or material terms that must be part of the agreement, so that the contract is clear enough to be enforceable.  Those include:

                        Parties – Who is the contract with?

                        Term – How long is the contract for?

                        Consideration – How much is being paid?

And lastly, what good or service is being provided.  Contracts can have many elements, but if there is offer, acceptance, and agreement on the who, what, when, how long and how much, there is probably a legally enforceable contract.

            Oral contracts are enforceable, but hard to prove, unless both sides agree on the terms.  Unsigned contracts can be enforceable if both sides agree the terms were intended to be followed.  Notes scribbled on a crumpled napkin and initialed can be an enforceable contract.  And an email exchange where the parties reach agreement can be a legally binding contract.  Written contracts are best because the writing memorializes or documents the terms of the agreement. And because contract can be enforced by a court, they can be very powerful.