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Business Contracts: What You Need to Know

business-contract-disputes.jpgEntering into a basic contract seems like it should be a simple black and white situation, but there are several factors involved in regards to business transactions. Disputes often arise when there are is question over a contract's meaning, validity, or enforceability. Contracts help protect both businesses and consumers by making an agreement legally binding.

California Civil Code identifies a contract as either express or implied. An express contract is a written agreement, an implied contract is when the terms are shown by conduct. The state recognizes oral contracts except when there is written agreement necessary by statute. While a verbal agreement can be considered binding in many instances, discuss with a business law attorney specifics that can help protect you and your business.

  • Capable consenting parties;
  • A lawful object; and
  • Consideration.

It is a good idea to have an attorney draw up a contract or at least review a contract to help avoid future complications or arguments. The basics to prove contract validity should include:

Certain parties, including minors and those not of sound mind, cannot enter into a contract. The contract must identify the names or titles of the parties consensually involved in signing the contract. The object of the contract must be legal and each person must gain something from the contract, otherwise known as consideration.

When there is a breach of contract, it can lead to disruption of service, violation of rights, and need for litigation. In the December 2014 contract dispute between CBS and Dish Network, The Los Angeles Times reported that CBS removed its signal from the Dish Network causing a blackout affecting nearly 500,000 customers of Dish programming, the network's largest market.

Our law firm represents clients in business contract disputes in different categories, including service contracts and contracts for the sale of goods. At Diemer, Whitman & Cardosi, LLP, our attorneys each have over 25 years of trial experience and the resources necessary to achieve positive outcomes for our clients. If you or someone you know is involved in a contract dispute in California, contact an experienced San Jose business law attorney for a free case evaluation today. We will help protect your legal interests.