In general, contract is a legal agreement written by two or more parties who invest money to carryout the venture. These contracts are often written to ensure the safety of the one’s assets who is indulged in the business.
Any court across the world could consider the contract has a legally valid if it contains 4 basic elements such as offer & acceptance, consideration, mutual assent and legal relationship. It’s not compulsory that every contract must be in written form. Few common contract types that require written contracts include buying land, selling land, purchasing motor car and other door-to-door sales contracts.
There are few prescribed rules that must be followed by both the parties involved in a contract, in case if the parties make any mistake in the contract, it becomes void and it cannot be sued under any law.
Few common mistakes that must be avoided while drafting a contract include mutual mistake, allocation risk, unilateral mistake, failure to understand and reach agreement and identity mistakes.
In case, if the contract is made to commit an illegal act or the contract that you have drafted is against the public policy or the event that is stated in the contract is impossible to execute, the contract stands null and gets annulled.
The infographic clearly shows 10 important steps and follow these steps to write or craft a successful contract.
