As a business owner, one may enter into business deals every week.  However, are those deals or agreements enforceable by a contract?  First, a contract is a legally binding agreement and can be a part of our personal and business lives.  It is essential for business dealings and if one party does not hold up to the end of the bargain, then the other party has legal remedies for any resulting damages.  However, every contract whether written or oral, must be up to par with several requirements in order to be enforceable by a court.  These requirements include the following: consideration (each party promises to provide something of value to the other), offer and acceptance (a clear definite offer to contract and an acceptance), legal purpose (the agreement must not violate the law), capable parties (to have the capability of making a contract and knowing what they're doing), and mutual assent (parties intend to be bound by their agreement and must agree on essential terms).

        Moreover, creating a business contract is a three-step process.  The first step consists of contemplating the deal.  In this phase, each party assesses the prospective arrangement and risks and attempt to predict the future.  The next step is reaching an agreement, in which both parties negotiate and agree on terms that become formalized in a written contract or documented evidence.  The final step is performance and enforcement upon both parties. Once the parties negotiate on terms, then the terms are formalized into a written contract or some sort of documented evidence.   Although not all contracts need to be in writing, State laws often require written contracts for real estate transactions, agreements that will last for more than one year, and for sale of goods over $500.00.  In my opinion, it is always best to have the agreement between parties documented in some sort of written contract or writing to avoid future problems. 

            To summarize business contracts should be in writing, kept simple, identify each party correctly, detailed in terms, specify payment obligations, agree on circumstances that terminate the contract and agree for a manner to resolve disputes.  If you have any further questions or would like to set up a business contract please feel free to ask for further details.