October 22, 2015 | 881 viewsTop 8 Mistakes That Can Make a Contract Void

Don’t be caught out when creating or dealing with contract law.

Our infographic of the month runs through the basics of contracts, and the top 8 mistakes that can make a contract void.

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Common mistakes made in contract law - infographic

Contract law can be tricky to deal with. It’s important to understand what constitutes a contract, common mistakes people make when negotiating contracts, and what is needed in order to create a contract that is legally binding.

4 Basic Elements of a Contract

A contract is a legally binding or valid agreement between two parties, which will be considered valid at law only if it contains the following four elements:

  1. Offer and acceptance
  2. Intention to be legally bound
  3. Consideration
  4. Certainty

8 Common Mistakes Made When Negotiating Contracts

When it comes to negotiating a contract, there are some common mistakes that people can make, which have the potential to cause problems. These include:

  1. Not engaging a lawyer
  2. Not addressing all contingencies
  3. Relying on generic template
  4. Not paying attention to the details
  5. Insufficient attention to indemnity, title and warranties
  6. Consequential loss of consideration
  7. Innovative default terms ignored
  8. Rushing the process

8 Important Steps in Creating a Successful Contract

So, what do you have to do to create a contract that is able to be upheld? Ensure there is:

  1. Offer and acceptance
  2. Valuable consideration
  3. No unfair terms
  4. Made in writing if required
  5. Intention to create legal relations
  6. Capacity of parties
  7. Certainty
  8. Avoid fraudulent terms

Need help with contract disputes? Get in touch with our team of contract law specialists today.

 

 

 

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