Key Parts to Business Contracts

Orange County contract dispute attorneys can explain that the first step to avoiding a contract dispute is to have a clear contract in place. Here are some important inclusions for business contracts.

Recital Section

This section is included at the beginning of many contracts. It sets out the overriding goal and purpose of the contract. While it is not legally binding, it can help assist with interpreting the contract and the parties’ intent. Any substantive information located here should be repeated in the body of the contract after the phrase “the parties agree as follows.”

Acknowledgment of Consideration

Consideration is the promise or set of promises that the parties make to bind them to the contract. This section establishes that the contract is good and lawful. Therefore, it is legally binding in case of litigation. The sufficiency of the consideration is also acknowledged in this section.

Exhibits and Schedules

Orange County contract dispute attorneys can explain that exhibits or schedules are sometimes used to introduce other documents to the contract. They may help aid in clarification of some of the terms.

Anticipation of Potential Problems

Every contract should be prepared in anticipation of litigation. Therefore, certain provisions should be included in the contract. For example, the contract should state which state’s laws will apply if there is a breach of the contract. Additionally, the contract may outline which court will have jurisdiction of any contract disputes. Some contracts may specifically require mediation or arbitration in the event of a problem with the contract.

Legal Assistance

If you would like more information on provisions that should be included in business contracts, contact Orange County contract dispute attorneys at Daily Aljian LLP by calling 949-861-2524.

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