{"id":4340,"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-faq.html"},"modified":"2024-05-24T01:22:31","modified_gmt":"2024-05-24T06:22:31","slug":"contracts-faq","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/contracts-faq.html","title":{"rendered":"Contracts FAQ"},"content":{"rendered":"\n
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Contracts FAQ<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\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

Small businesses run on contracts and legal documents. Small business owners should have a basic understanding of contract law<\/a> when they open their doors. You don’t need a business law degree, but you should know what you’re looking at when you sit down with vendors or apply for a business loan.<\/p>\r\n

All valid contracts have a few things in common. Read on to learn what your contracts need, what to do in case of a breach, and what makes a contract invalid, as well as to get answers to frequently asked questions (FAQs).<\/p>\r\n

For additional information, visit FindLaw’s Business Contracts and Forms<\/a> Section<\/b>.<\/p>\r\n

What do valid contracts need?<\/h2>\r\n

All types of contracts contain the same elements.<\/a> The parties must have the capacity to enter into a contract. They must be mentally and legally able to agree to the contract terms. There must have been mutual agreement between all parties. Parties indicate agreement by offer, acceptance, and consideration. The offer<\/a> is the the subject of the contract, acceptance is approval<\/a> of the offer, and consideration is the exchange<\/a> of value for the services or goods.<\/p>\r\n

Do contracts need to be in writing to be valid?<\/h2>\r\n

Not always. Binding contracts can be written or oral, but a few types must be written<\/a> to be valid. These include:<\/p>\r\n