The Restatement of the Law, Second, Contracts defines a contract as “a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.” More specifically, a contract memorializes a legally enforceable agreement between two or more parties and spells out the promises and rules that govern the transaction.

The rules of a contract generally include:

  • the statement of relevant facts pertaining to the transaction;
  • each party’s promises to take action or refrain from taking action;
  • each party’s rights;
  • the terms that must occur before each party is obligated to perform;
  • each party’s discretionary authority;
  • how the contract will end;
  • what constitutes breach and remedies; and
  • the general policies that govern the exchange relationship.

The Purpose of Contracts

Contracts service as forward-looking, problem-solving devices.

“ My key goal in contract formation is to accurately memorialize the business deal in a manner that unambiguously captures the agreed upon terms and reduces your risks. ”by Shay V. Holder, Esq.

Have questions about the type of contracts that may be required to properly cover your business operations? Need representation or guidance with contract formation?

Contact Attorney Holder for your contract needs.