Contractual Dispute Resolution
A contract can be defined as an agreement between two or more parties with the purpose to create and bind them in a commitment. In order for a contract to be valid it must be within the restraints of the law, it must actually follow the law, all the parties that sign it must be in agreement with it and something of value must be exchanged. The contract must be in writing, as verbal contracts are not enforceable contracts, that is amoral agreement and that is not enforceable in court. In light of the foregoing discussion, a person may add a further element to this definition, that the agreements have the right to be bonded on both parties.
The legality and binding of a contract is what makes it an enforceable contract. There are several other requirements in addition that are to be complied with in terms of the agreement. The label “contract” is in reality not reserved for agreements that are manage to bind commitments. Even if one or more of the requirements for validity is lacking, it is a common practice to describe the agreement as a “void contract”.
REQUIREMENTS FOR A VALID CONTRACT
For an agreement to serve and to be recognized as a valid and binding contract, it must meet the following requirements:
• Consensus: the parties’ intent in their minds must match (or at least appear to match) on all material aspects of their agreement;
• Capacity: the parties must have the necessary legal capacity to contract;
• Formalities: wherein exceptional cases, require that the agreement should be in a certain format (for example, in writing and signed), these formalities must be respected.
• Legality: the agreement must be lawful – in other words, it cannot be prohibited by law or common law;
• Possibility: the undertaken commitments must be performed when the agreement is entered, and
• Security: the agreement must have definite or determinate content so that the commitments can be enforced.
FORMALITY REQUIREMENTS THAT THE LAW PRESCRIBED
The drafting of the contract is the creation of the contract that states the terms and conditions to the agreement. This will need to be read, understood and signed by each party if they wish to still enter into the agreement. This is to avoid any breach of contract which could end up in a large and expensive legal battle. Especially if this breach of contract denies or no longer serve the value that the other parties are receiving. sometimes the contract is executed and notary in order for the third parties to be effective.
Certain statutory requirements also apply to the formalities relating to electronic contracts. Key examples are discussed below. Although many different policy considerations that underlie the establishment of formalities each has its own goals and uses its provisions to explain.
Although the wording of any statutory determination that prescribed title statements as a formality, the actual incidence of the provision determined, the following general observation can be made:
• All the material terms of the contract shall be in writing.
• The terms of legal remedies are not needed to be in writing.
• All the terms don’t have to be in one document.
• In changes in the material terms of the contract must be in writing to be valid.
• Sometimes a party mislead the other party by agreeing to an oral amendment of the contract.
Breach of Contract
If the formalities are not met, the contract is void. Any contract disputes must, however, be consulted by legal professionals.
In order to draft a contract that is valid, fair and serves the needs and interests of all parties involved, it is best to consult the services of a professional. This way you can ensure that the contract is enforceable. It also ensures that you will have a way forward if there is ever a breach of contract.
Dreyer Engelbrecht Attorneys Inc. can assist you with any resolution of contractual disputes which you may encounter.