A business contract is a legally binding agreement between two or more parties that outlines the terms and conditions of a business arrangement. The basics of a forming a business contract include:

  • Offer and acceptance: A clear offer from one party and an acceptance from another party to enter into the contract.

  • Consideration: Something of value, such as money, goods, or services, must be exchanged between the parties.

  • Mutuality of obligation: Both parties must agree to fulfill their obligations under the contract.

  • Capacity: Both parties must have the legal capacity to enter into the contract.

  • Legality: The contract must not be illegal or against public policy.

  • Written agreement: While oral contracts can be legally binding, a written agreement provides clear evidence of the terms of the contract.

  • Signature: The contract must be signed by all parties involved to indicate their agreement to its terms.

These elements are important to ensure the enforceability of the contract and to prevent misunderstandings or disputes between the parties.

This list is by no means exhaustive and when initiating any business deal from a simple sale of a product to huge multi-national deals, it is important to understand what you are agreeing to and what is included in the contract.


To learn more or get a legal review of a contract, complete the form or call +1(603) 227-0525, to Reach Aaron.

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