Various aspects of a business agreement

Defining a business agreement

An agreement is an understanding among two or more business parties about the transaction(s) that will happen in the future. An agreement is legally binding, meaning if any party doesn’t fulfil the terms mentioned in the agreement, then the other parties involved can take legal action against the party at fault. In other words, an agreement is a combination of enforceability, promise, and consideration.

Aspects of a business agreement

There are various aspects that an agreement needs to satisfy before it can be called an agreement. Here is a list of aspects that all business agreements must satisfy:

1. Offer: When a party promises to do something for the other party or to abstain from doing something, it is called an offer. Offer is the penultimate activity before it becomes an agreement. The offer must be accepted by the other party and when that happens, both parties have entered into an agreement. A good offer has 3 characteristics; clear, unambiguous, and definite.

2. Acceptance: As mentioned above, when the offer is presented to a party they have the choice to accept or reject it. When the offer is accepted, it becomes a promise. There is no one definite way of accepting an offer. An offer can be written or oral and acceptance also can be written or oral or through conduct. Acceptance has 4 characteristics: clear, definite, unqualified, and absolute.

3. Consideration: In simple terms, consideration is the price of the agreement. Both parties must give and receive goods or services in exchange for a consideration value.

4. Capacity to Contract: An agreement becomes void if any of the parties is a minor, of unsound mental health, or under influence.

5. Consent: Both parties should be willing to honor the agreement without any unlawful force. The important thing to note here is that consent should be free meaning there should not be any coercion, concealment of facts relevant and important to the agreement, undue influence, and fraud.

6. Lawful motive: An agreement becomes void if it’s used for unlawful activities such as dealing of prohibited drugs or a promise to murder etc.

The right business agreement lawyer facilities a smooth process

Matters related to business agreements need a lawyer that has an eye for details and can identify the slightest loophole in the agreement. Therefore, it’s safe to say that a business agreement lawyer is involved in almost every legal decision of the company. If you want to furnish an agreement for your business, make sure you contact the best business agreement lawyers in Calgary from Duplooylaw.

The business environment is ever-evolving and only those survive who make the necessary changes and stay relevant with time. The economy is presenting brand new opportunities for businesses and to take benefit, the right legal representation of your company is crucial. Business agreement lawyers in Calgary are here to serve you an impeccable legal experience. Agreements and contracts are an important part of business law and every business frequently signs agreements. Business agreement lawyers in Calgary from Duplooylaw are one of the best in the region. They have assisted numerous businesses across many industries realize their goals. Hire the best from Duplooylaw today and always.