RUNNING HEAD: CONTRACT LAW- HOW TO CREATE A LEGALLY BINDING CONTRACT1Whether you are entering into a relationship with a customer, a vendor or an independent contractor, contracts are a fact of business. You need them because they serve as legally valid agreements protecting your interests. But aren’t contracts laden with legalities? Don’t they have to be reviewed by an attorney to ensure their validity? Not always [Blo13].In fact, I’ve seen contracts come across my table that are less than one page in length, in plain English, and still legally binding. How?Generally, to be legally valid, most contracts must contain two elements:All parties must agree about an offer made by one party and accepted by the other.Something of value must be exchanged for something else of value. This can include goods, cash, services, or a pledge to exchange these items.In addition, certain contracts are required by state law to be in writing (real estate transactions, for example), while others are not. Check with your state or with an attorney if you are unclear, but it’s always good business practice to put every binding agreement in writing [Blo13].In order to be enforceable, a contract must ordinarily involve the following elements:MEETING OF THE MINDSThe parties to the contract have a mutual understanding of what the contract covers. For example, in a contract for the sale of a "mustang", the buyer thinks he will obtain a car and the seller believes he is contracting to sell a horse, there is no meeting of the minds and the contract will likely be held unenforceable [Con16].
CONTRACT LAW-HOW TO CREATE A LEGALLY BINDING CONTRACT2The contract involves an offer (or more than one offer) to another party, who accepts the offer. For example, in a contract for the sale of a washer and dryer, the seller may offer the home