Important: this course is educational material only and is not legal advice. Contract law varies by jurisdiction. Always have significant agreements reviewed by a qualified lawyer licensed where you operate.
What a Contract Is
A contract is an agreement between parties that the law will generally enforce. In many jurisdictions, a binding contract needs an offer, acceptance, something of value exchanged by each side, an intention to be legally bound and parties with capacity to agree. Some contracts must be in writing or signed in a particular way.
Why Written Contracts Matter
Verbal agreements can be binding, but they are hard to prove and easy to remember differently. Written contracts record expectations clearly and help prevent disputes.
Contracts Allocate Risk
Much of a commercial contract is about deciding who bears the cost if something goes wrong. Understanding this helps you focus on the clauses that matter most to your business.
Exercise
Collect the contracts your business has signed or regularly uses. List each with the counterparty, purpose, start date and renewal or end date. You will use this list throughout the course.