Let’s Get To The “Root” of the Problem… GET IT IN WRITING!
How many times have you or someone you know, said that they were going to take care of something for you, but then never followed through? Have you had a family member or friend ask to borrow money and said they would pay you back and then did never?
How did that make you feel? It happens every day and probably more than we admit simply because we did not have the agreement in writing. Have you ever heard, “We have a failure to commincate!” Usually this is because one party hears something that the party did not.
Get it in writing! This is something that we all know we should do but many times do not follow through on the getting it in writing. Why is this? Is it the fear of losing the deal? Maybe, but especially nowadays you need to protect yourself and the deal. And even if you did have an agreement, you still need to be aware of the esstial elements required to make an enforceable contract. Wheather it is a sale and purchase of property, an estate plan or simple family arrangement, get it in writing!
An Agreement versus a Contract
A contract is an agreement between parties that is legally enforceable. A simple “agreement” is an arrangement between the parties that may or may not contain the necessary elements to be enforceable. A simple “agreement” is an arrangement between the parties that may or may not contain the necessary elements to be enforceable before a court of law. Basically, a contract is enforceable by law while an agreement may not be enforceable by law.
A valid contract must contain these essential elements:
- Offer: Willingness, Terms, Offered
- Acceptance: Willingness, Accept
- Consideration: Value, Exchanged
- Formalities: Signed Writing, Witnessed, Security Agreement, Filing Document
DON’T GET INTO TROUBLE!
When many people get into trouble on a contract or agreement, they think that that if they ignore the problem it will be minimized or go away. Unfortunately that is not the case. If you are in trouble, it is important that you try to resolve the problem as quickly as possible. If not, you may find yourself not only paying back the original debt, but penalty amounts, accruing interest, court costs including filing and service fees, and attorney’s fees. In my personal experience I have seen debts under $150 become debts in excess of $1,000.
BEFORE SIGNING:
- I cannot be bound by provisions I am not aware of.
This is false. Everyone is presumed to have read and understood each of the provisions of any contact they sign. As a result, it is important that you carefully read the contract before you sign it. This will tend to make the salesman very nervous, but is a good practice. If he is nervous, there is generally a reason that will hurt you later if you are not aware of it.
- I can rely upon the salesman’s statements.
Most sales contracts contain wording to the effect that the company is not bound by anything the salesman may have said, and that the written document you signed is the full and total agreement. This is another reason you should carefully review the contract. If the contract does not include the provisions the salesman told you about, they should be handwritten into the document and signed by both you and the salesman.
DID YOU KNOW? Online contracts, which are easily made, are usually valid on a smaller scale for a period of one to three months, while on a larger scale can last about five years. As with all things legal, especially in regards to the ever-evolving internet, general rules like length of validity have many exceptions. All cases are evaluated on their own merits, and those merits are defined by the facts presented in each instance. It is up to the owner of the site to do what it can to guarantee enforceability of its contracts. Though 90% of people sign online contacts before reading the content, E-signature laws have made the electronic contact and signature as legally valid as a paper contract. It has been estimated that roughly one hundred and ten electronic contacts are signed every second.
written by By Dedra Curtis
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