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For example, if a contractor offers to renovate a client's house for a certain price and the client accepts the offer, the two parties have entered a contract.Īn offer is a conditional proposal that begins a negotiation. Legally binding contracts must include a party making an offer and another party accepting the terms of the offer. Elements of a valid contractįor a contract to be considered valid and enforceable, it must possess the following elements: 1.

Ideally, contracts should always be in writing, as verbal agreements can be much harder to enforce.īut what exactly makes a contract legally binding? There are five key elements to check for when executing your next contract.

How to review a contract before signingĪ binding contract is a written or spoken agreement between two or more parties that is legally enforceable.

In this guide, we help prepare you for signing your next legal document by exploring the elements of a valid contract, contract clauses, reviewing and amending contracts, and more. Besides having to read through complex legal language, navigating how to sign a contract and protect yourself can seem overwhelming. Signing and entering contracts can be confusing when you aren't a legal expert in contract law.