{"id":4338,"date":"2016-04-04T10:47:27","date_gmt":"2016-04-04T15:47:27","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-contracts-forms\/contracts-and-the-law.html"},"modified":"2024-05-24T01:23:47","modified_gmt":"2024-05-24T06:23:47","slug":"contracts-and-the-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/contracts-and-the-law.html","title":{"rendered":"Contracts and the Law"},"content":{"rendered":"\n
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Contracts and the Law<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

More than 99% of all businesses in America are small businesses. That means they have fewer than 500 employees. Small business owners operate the companies that keep the country running. Business contracts<\/a> between these owners keep their companies working together smoothly.<\/p>\r\n

No matter what type of business you run, you should understand contract law in order to create legally enforceable business agreements. You should know about small business programs available from the government, and your business plans should include ways to expand as your business grows. This will help you understand contracts and business law.<\/p>\r\n

Contract Requirements<\/h2>\r\n

A contract is a legally enforceable agreement<\/a> between two or more parties. A valid contract creates an obligation to honor the agreed-upon terms. A service contract creates an obligation for performance, such as construction or procurement. A sales contract (sometimes called a purchase agreement) covers the buying and selling of products.<\/p>\r\n

A valid contract<\/a> must contain an offer, acceptance of the offer, and consideration or payment:<\/p>\r\n