A contract is an agreement where two or more parties agree to exchange money and services. The agreement to bind each other is an important feature of contracts and is essential to the smooth running of society.
Contracts are increasingly complex thanks to the digital revolution, but at the end of the day the modern contract still has the same essential elements namely:
The offer or prestation is the proposal to make a deal. It needs to be accepted for the contact to proceed.
Valuable consideration is usually defined as money or the object that will be given in return for money. Both parties must be bound to deliver the consideration that the other person desires in return for the consideration that they want to obtain.
A contract is deemed perfected when two parties agree. However, a contract is not consummated until the considerations are exchanged.
Written or Oral?
Contracts can be written or oral. But for our purposes, we prefer written contracts because oral contracts tend to devolve into an argument about the other party lied. Written contracts record the terms of the contract, so it is hard for a party to pretend they did not agree to things.
The benefits of a Contract
A written contract can have many benefits. Here are just a few of them.
For example, a lawyer can write a complex non-compete or exclusivity clause that will punish a party in a way that will penalize them should they dare not to deliver on what they promised in the contract.
Keep in mind that a lawyer's job is to advise his clients and keep them away from potential liability so having on is a big plus.