| A contract is a legally binding agreement between | | | | contract is acceptance of the offer. Once an |
| two or more parties that's enforceable by law. | | | | offer has been presented, all parties to the |
| However, not all contracts are created equal. In | | | | contract must fully and openly accept the offer. |
| fact, some contracts aren't even valid. | | | | An offer can be accepted in writing, verbally over |
| Contract laws can vary from state to state. A | | | | the phone, or via the U.S. mail. In the latter, the |
| contract that is valid in California may not be | | | | offer is deemed accepted from the moment the |
| enforceable in Florida. A form contract | | | | mail is placed inside of the mailbox; not from the |
| downloaded from an online source, although | | | | time the recipient receives the mail. |
| properly formatted and full of legal terminology, | | | | Oftentimes, in response to an offer, a party will |
| may not adhere to the contract law requirements | | | | suggest revisions or attempt to change the |
| in the state in which you operate your business. | | | | conditions of the original offer. In these instances, |
| As a businessperson, it is imperative that the | | | | the original offer is considered rejected, and the |
| contracts you're relying on to protect your | | | | revisions and/or new conditions are deemed |
| business are doing just that, and not leaving your | | | | counter-offers. |
| company vulnerable. | | | | Component #3: Consideration |
| Under Florida law, a contract must have three (3) | | | | The third must-have component of a contract is |
| essential components to be considered valid and | | | | consideration. Consideration describes the value |
| enforceable. Those components are: an offer, | | | | that will be given to the parties of the contract in |
| acceptance of offer, and consideration. Let's take | | | | exchange for their performance. There are |
| a moment to discuss each must-have component | | | | various forms of consideration including, but not |
| below: | | | | limited to, money, services, and tangible items. |
| Component #1: An offer | | | | Without consideration, the performances promised |
| The first required component of a contract is the | | | | in your contract are merely gifts. In order to |
| offer. An offer is a written or verbal statement | | | | satisfy the validity threshold, your Florida business |
| of either party indicating their intention to act | | | | contract must evidence some form of |
| upon acceptance. An offer can be renegotiated, | | | | consideration on behalf of all parties involved. |
| withdrawn or rejected at any time prior to | | | | As a business owner, you're probably no stranger |
| acceptance. However, once the offer has been | | | | to contracts. Regardless of the nature of your |
| accepted and the contract signed, your | | | | business, doing business with an ironclad business |
| company's considered a party to the contract and | | | | contract can prove to be essential to your |
| will be obligated to perform or not perform as | | | | company's success. With the decline of the U.S. |
| agreed. | | | | economy and rise in the number of breach of |
| Component #2: Acceptance of the offer | | | | contract claims, now is the time to reevaluate the |
| The second required component of any Florida | | | | contracts you're using to protect your business. |