Essential Elements of a Legally Binding Contract

I did not understand contracts and I still do notAnd guess what, a contract is not set in stone.
understand contractsThere is scope for both parties to renegotiate
Thus said Janette, the mother of International andsome or all of the terms of the contract.
Manchester United footballer Wayne Rooney asHowever, it is advisable to have written evidence
she sat in court earlier this year at the hearing ofof any variation to the original terms of the
a contract dispute between her son and hiscontract.
former agents.There is this misconception that a contract is only
And she is not alone - so many of us recoil at themade in writing, but verbal discussions can also
mere mention of the words contract, agreementamount to a contracting situation. And this is
or terms and conditions. Then there are those ofwhere it becomes extremely difficult to reach an
us who rely on a wing and a prayer, and theagreement about who said what! One party might
traditional handshake between two gentlemen,simply have forgotten any verbal representations
when dealing with their clients or suppliers.that he or she made leading up to the unspoken
Well it is time to get real! In the words of Meilagreement to contract. The worst case scenario
Stein, the agent representing Wayne Rooney:inis that one or both parties are simply unscrupulous
the real world, people do in the world of sport,and wish to dishonour the agreement. All this
renegotiate contracts, however long they are, athassle can be alleviated, if we get in the habit of
early stages and companies and clubs sit downsimply putting to paper what we have agreed.
and renegotiate because they want to have aAnd this applies to our personal relationships too.
happy client.O.K. you might not want to go as far as a pre
A contract, far from being a source of worry andnuptial agreement, but there are other
concern should really result in a happy clienttransactions that can be committed to paper e.g.
relationship. The contract should help both partiesfamily loans, joint venture agreements between
to put in writing what they have agreed. Yes, itfamily members or friends are two that spring to
might be littered with legal jargon, but at the verymind.
least, it should simply set out the following details:Janette with the backing of her sons millions can
- the parties to the contractprobably get away with simply saying that, she
- the length of the contractdoes not understand contracts. However, if you
- the product or service to be deliveredare a small business owner or self employed
- the fees involvedperson, you must make it your business to not
- what should happen if there is a disputeonly understand contracts, but also to use them in
- how to vary the termsyour business transactions. It could save you a lot
- data protection, confidentiality and intellectualof time and money - two things that you cannot
propertyafford to waste.
- the jurisdiction for any legal proceedings