Why review contracts, regardless of length?

I get a lot of calls about contracts.

What is a contract?  A contract by law is (1) an offer, (2) an acceptance, and (3) mutuality.

*There is a case about a million-dollar case in Alaska where a contract was formed on a napkin.  

Back to our regularly scheduled program, let's break the elements of a contract. The first element is an offer. An offer is when a party offers some type of product or services to another person.

The next element is an acceptance in which a party sees an offer and either offers to pay for service and/or product; or provides some service and/or product in exchange. The latter part is what some courts may call a reliance.  

The third element of a contract is mutuality. Mutuality is a tricky element of contract law. Because mutuality is if the value comparable, it bargained for, or the value exchange reasonable.

Many people don't understand that even though you might have a written contract, if there is some type of the duress, no bargaining, or the contract was forced; the contract is not valid.

So let's go to the topic of this this blog “why review contracts, no matter the length.” Because even though a bad contract can be voided out, you do not want to have yourself in a compromising position.

If you are negotiating something that does cost anything over $3,000.00 to $5,000.00 USD, you might want to have a lawyer review it. I typically charge a flat fee to review a contract. And when I review a document, I click on track changes, so the client to know the suggestions.

But whatever a lawyer charges to look over a contract is always cheaper than losing out on money. I know too many clients who have just blindly giving large lump sums of money away without having at least an attorney to look at the deal or the contract.

So don't think that you're just such a savvy business person where you don't need lawyer or you feel like lawyers are too expensive. Let me tell you what's expenses, giving money, product, or services and not having the ability to seek legal recourse.

Takeaways:

Lawyers exist for a reason. Pay one to review a contract. It will save you in the long run!

~  Attorney Ronnie O’Brien Rice, Ph.D.

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Location: Alabama, USA

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