Signing contracts is a very common part of doing business in Louisiana. Companies large and small enter into business contracts that include obligations to perform certain tasks or provide certain goods. However, as common as this practice is, some of our readers may be wondering: What are the important parts of a business contract?
For starters, it is important to understand what a contract is on the most basic level: an agreement. The parties to the agreement will agree that the promises of performance included in the contract are legally binding. A contract begins with two important legal concepts: offer and acceptance. An offer must be valid — that is, it must be clear and understandable. The acceptance of an offer must be equally clear. Both parties must understand what obligations they are committing to in the contract.
But it is the substance of the contract that is the most important. For many Louisiana companies, the contracts are with a vendor to provide inventory, or perhaps with a service company to perform a regular service.
However, another part of a contract that can become more important than any other part is the part that addresses how contract disputes will be handled. If the agreement does not pan out quite like the parties agreed to, a dispute could result in litigation. Including provisions that anticipate and plan for a contract dispute can, in the end, be more important than anything else.
Source: FindLaw, “Contracts and the Law,” Accessed May 14, 2016