A Costa Mesa business attorney drafts contracts on a routine basis. Contracts are at the heart of commercial industries. They establish the rights and responsibilities of each party so that both parties clearly understand their relationship with each other. They also sometimes provide certain remedies when the contract is breached, or broken. A Costa Mesa employment lawyer may review employment contracts to determine if such a breach occurred. He or she considers the following characteristics of contracts during this assessment.
Statutory Requirements
Some contracts must follow rules established separately by statute. For example, insurance companies are often highly regulated in order to protect the public. When an accident occurs, financial resources are usually available to help assist in the situation.
Competence
A valid contract requires that both parties be competent when entering into the contract. Competence is determined by age and mental agility. Minors usually are unable to contract. Individuals must have a clear understanding of the terms of the contract so that they understand its nature and terms associated with monetary effects. It is public policy to allow competent persons to enter into valid contracts freely. Individuals are usually bound by the terms of the contract unless the contract was due to fraud, duress or undue influence.
Meeting of the Minds
A contract should be a manifestation of the parties’ meeting of the minds. This means that both parties mutually agreed to the material terms of the contract.
Legal Assistance
If you would like information about how to draft a valid contract, contact a Costa Mesa business attorney from Daily Aljian LLP.