Signed contracts are an essential component of financial and business transactions. They signify that the parties have reached an agreement and understand the terms contained within it. However, improperly signed documents can render the contract invalidated and affect your legal rights.
The article below outlines and details everything you need to know about signed contracts:
A signed contract is a legally binding agreement. Parties sign contracts on the dotted line after negotiation discussions and upon reaching a mutual understanding. A contract’s signature tells legal decision-makers, such as judges and mediators, that you willfully entered into the agreement and were competent to do so.
Examples of signed contracts include the following:
While not a requirement, having a written and signed contract is always a wise approach for transactions exceeding $500 in value . By ensuring that you and the other party are on the same page, you can reduce the potential for future disputes.
Yes, signed contracts are legally binding. They are legally binding when they meet the elements of an enforceable and valid agreement. These elements include an offer , acceptance , consideration , mutual obligation , and competency .
A legally enforceable contract is more than just a friendly promise. It specifies the provisions upon which both parties agree. If a dispute arises, judges and lawyers will review the original agreement to learn more about the issue.
Ensure that your documents contain the following elements of a legally binding contract:
Contracts are essential in the business world. This assertion means that establishing a legally binding agreement is critical while ensuring that all terms and conditions are clear. Both parties must be aware, competent, and capable of entering into one to withstand validity tests.
Signed contracts create legal implications. The most significant among them is that you agreed to the provisions and intended to enter the agreement. As such, it’s wise to review the terms when signing a business contract carefully.
The following is implied when you add your signature to a contract:
It’s critical that you fill in all blank lines and understand the terms completely. Obtain the signatures of the other party and make signed copies. Distribute these signed copies among all parties and keep the original in a safe location.
Parties may also sign contracts electronically. The legality and enforceability of a digital signature won’t come into question unless there is an objection to the agreement’s validity. Several software programs use encryption to authenticate and document a digital signature.
Here is another article about signing a contract properly.
Meet some lawyers on our platformSigned contracts refer to a broad range of written agreements. When both parties sign the contract, they accept specific provisions that carry duties and obligations. These provisions will vary according to the transaction type, industry, scope, and parties involved.
However, these terms are commonly found in a signed contract:
As you can see, signed contracts carry multiple legal implications of which you should be aware. Doing so can reduce your exposure to breach of contract claims or other disputes brought forth by the other party.
Yes, you can get out of a signed contract. However, the primary consideration when terminating a signed agreement is cost, and the most cost-effective solution is to renegotiate the terms amicably. If that strategy doesn’t work, you need to prove that the contract was unenforceable from the start or the other party committed a breach of contract .
Terminating a signed contract is never an easy endeavor. Some parties may readily agree to the request, while others may fight it. This outcome depends upon the scope, depth, and cost of termination.
Here are a few tips for terminating a signed contract:
As a matter of formality, contract termination notices should generally be in writing. Any verbal or phone conversation about terminating the agreement should also follow up with a written acknowledgment. Always check the contract for specific instructions, such as where to send the notice and to whom.
You need a signed contract to authenticate its validity and enforceability. Your signature demonstrates that a bonafide deal took place, and all parties understood what they were doing at the time of signing. If you don’t have a signed contract in place, both parties expose the transaction to legal interpretation by lawyers and civil court judges.
Your state’s small business laws influence your signed contracts. While a contract template can help in a pinch, business contracts lawyers can offer you legal advice and guidance. Consider working with a legal professional today to avoid signing errors while ensuring that your contract represents your intentions. Post a project in ContractsCounsel’s marketplace to get bids from vetted lawyers if you need help.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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Attorney and mediator with extensive experience in negotiating, drafting, and managing contracts in the private, public, and nonprofit sectors.
40+ years handling litigation matters for employers and employees, defense and prosecution of personal injury matters, CalOsha defense, prepare employment contracts, non-compete clauses, established drug policies and franchise agreements. represented banks in commercial litigation , asset retrieval matters. conducted audits of insurance company claims on behalf of employers, defended contractors in toxic tort cases, handled appeals to the insurance commissioner on workers compensation rate classification matters
Christian Davila received his Juris Doctorate from St. Mary’s University and becoming a member of the State Bar of Texas in 2013. Before law school, he studied at Texas A&M International University (TAMIU), and participated in multiple programs across various fields of study, including the University of Texas Medical Branch-School of Medicine’s “Early Medical School Acceptance Program,” and the Hispanic Association of Colleges & Universities’ “National Internship Program” at the Library of Congress in Washington, D.C. Christian’s legal experience includes criminal law (both prosecution and defense), family law, transactional law, business litigation, real estate litigation, and general civil litigation. Christian was previously in-house counsel for a multi-million dollar apartment construction and management company, handling all property acquisition, document drafting, negotiations, and litigation. Christian is a former member of the American Association for Justice (formerly the Association of Trial Lawyers of America), and he has been distinguished by the National Trial Lawyers as one of their TOP 40 Civil Plaintiff attorneys in Texas UNDER 40 years old. He likes weightlifting, reading comicbooks, and being silly with his kids in his spare time.