If you have a Florida business, you will probably need to rely on multiple contracts throughout the life of your enterprise. Drafting, negotiating, and entering into these agreements is often a routine part of daily business operations. These legally-binding agreements can also be the foundation of a functional business model.
Under the right circumstances, business contracts can provide certainty, confidentiality, compliance, and support for both parties to the transaction. However, contractual documents must be properly created to provide these and other important benefits. Here is more on what you need to know about drafting your business contract.
What is a Business Contract?
A business contract is essentially an agreement between two or more business parties that governs a transaction. When properly drafted, contractual agreements are enforceable under the law.
Written v. Oral Business Contracts
In Florida, most business contracts are in writing. However, not all agreements have to be in writing to be enforceable in Florida. That being said, oral contracts can be difficult to prove and enforce. Therefore, even if it is permissible for a contract to be verbal, it is usually best to get the agreement terms in writing.
Types of Business Contracts
Depending on the industry, a business may require a few or several contracts to support its operations. Some of these types of business contracts include but are not limited to:
- Contracts for the Sale of Goods
- Contracts for the Sale of Services
- Employment Contracts
- Confidentiality Agreements
- Real Estate Purchase Contracts
- Commercial Lease Agreements
- Non-Disclosure Agreements
- Shareholder Agreements
- Partnership Agreements
What Must a Business Contract Include?
Business contracts vary according to the transaction details and needs of the parties. However, to be formed, these agreements must include the following elements:
- Offer—a party, proposing to buy, lease or acquire something
- Consideration—each party giving something of value to effectuate the agreement
- Acceptance—a party agrees to the offered terms
- Terms—language that defines the essential details of the agreement
These are the basic requirement that a legally-binding business contract should have. In addition, all parties must be competent to enter into the agreement. Therefore, you will want your contract to include language that reflects that these conditions have been met.
Business Contract Terms
Your business contract language will depend on your transaction details. Therefore, it’s essential to be able to identify crucial information so that it can be accurately reflected in your agreement. This typically involves gathering relevant information, such as the parties’ names, addresses, and other identifying details. You will also want to ensure that you include important facts related to price, delivery terms, and possible contingencies. There will also be the matter of including language that addresses potential breaches. In addition, you will want to include dispute resolution language.
It’s essential to recognize that a business contract is a legally-binding document that can have significant financial consequences for you and your enterprise. When contracts are well-drafted, they can serve their intended purpose and help minimize liability and ambiguity. Unfortunately, some agreements are created in a manner that leaves the parties vulnerable to conflict and lapsed terms.
The best way to help ensure that your business contracts are comprehensively and thoughtfully drafted is by working with an experienced Florida business attorney. Business lawyers understand how these documents are used and operate in the real world and know the right language to use to make them effective.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Legal Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.