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Can I enforce my contract?

On Behalf of | Dec 11, 2021 | Contract Disputes and Litigation |

Entering into an agreement with another business or an individual is often an essential part of running a business. However, there can be complications when it comes to enforcing a contract or pursuing legal action for a breach of contract. One of the best things a California business owner can do comes well before there are any issues. When drafting a contract, business owners should be sure that it will be enforceable in the future. 

Establishing the agreement as a contract 

While it might seem silly, one of the most important steps is to clarify that an agreement is a contract. In a valid contract, one party makes an offer that another party accepts. This offer should include something of value that is given for a promise. It is also helpful to clearly state within the document that it is a contract, as this should eliminate any ambiguity on the matter. 

Additional considerations 

A judge will take many factors into consideration when being asked to enforce a contract. For example, he or she may look at both parties’ capacity to contract, which refers to whether someone is legally capable of entering into a contract. Minors or those with mental impairments may not have the capacity to contract, rendering a contract unenforceable. Other factors a judge will look at include: 

  • Potential undue influence or misrepresentation 
  • Unconscionability 
  • Mistakes 

Enforcing contracts can be vital to a business’ overall health and growth. Unfortunately, even contracts that appear valid at face value may be difficult to enforce. Before a California business owner ends up in a situation in which he or she cannot enforce a contract via a breach of contract lawsuit, it is a good idea to first carefully review the terms of the agreement under the guidance of a knowledgeable attorney.