A small business lawyer can help you resolve disagreements with clients or business partners, offer advice and legal counsel, review contracts and much more.
What is a Small Business Lawyer?
An experienced, qualified small business lawyer helps improve your company’s productivity, resolve disputes, and navigate complicated business contracts. This is invaluable for understanding legal jargon and whether you have recourse when the other party is not meeting their responsibilities.
Defining “Contract”
A contract is a set of binding promises that each party agrees to. These promises are legally enforceable responsibilities, obligations, and duties for each party to the agreement. To be legally binding, contracts must contain certain key elements. These include:
Offer: Typically, one party usually extends an offer to take a specific action. This may be an offer to pay for a task or sell a product/service at a particular price. For example, an employer extending a job offer to a potential employee.
Acceptance: For the contract to be complete, the other party must accept the offer. This can be in writing or by spoken word, in person, by phone, email, or mail.
Agreement: an agreement means that all parties understand the meaning of the terms stated and accept the terms.
Consideration: Each party must provide something of value (called “consideration”) to the other party. For example, an employee provides work in exchange for payment.
Competency and capacity: Each party must have legal capacity (mental competency) to enter the contract. A person under age 18, for example, does not have the legal “capacity” to enter into a contract.
Legality: The contract must have a legal purpose that does not break any laws.
While most contracts are written, oral contracts may also be considered valid. However, some oral contracts are not always enforceable, particularly if they involve real property.
Contract Disputes in Small Business
Disputes could arise if a party involved in the contract breaks their promise. In this case, the harmed party may be able to seek legal recourse. This is called “breaching the contract”. There are minor breaches and material breaches. It’s important to understand that an actual breach of contract typically results in damages.
Minor Contract Breach
A minor breach is typically less severe than a material breach and gives the harmed party the right to sue for damages. However, it does not excuse them from performing their duty in the agreement.
For example, Bob contracted Tom to build a barn with two doors and Bob agrees to pay for the building materials. If Tom only puts one door on the barn, Bob can sue for the absence of one door, but he may still be responsible for paying for rest of the barn since Tom substantially fulfilled his end of the agreement.
Material Breach
A material breach excuses the harmed party from further performance and gives the harmed party the right to sue for damages. A material breach is a breach that cannot be rectified, making the contract useless.
For example, let’s say that Julia hires John’s company to deliver tables and chairs for a charity event. Julia agrees to pay John for the rental. John fails to deliver the tables and chairs in time for the event. Since Julia needed them by a specific time, no consideration by John will resolve the damage. Julia will likely be excused from paying the rental fees and John may be liable for Julia’s damages.
Small Business Lawyer Near Me
Whether it is a minor or material breach, a small business lawyer can help you understand your rights and ensure that you are protected in Fairfax, Northern Virginia. To learn more about your options for breach of contract, please contact Cook, Craig, & Francuzenko today.
