1. Contracts and Agreements

2. Definition…
a contract is a legally binding agreement between two or more parties which is enforceable by law.
Meaning that you can take someone to court and sue them if there is a breach of contract.

3. To be legally binding…
A contract must specifically state the nature of the agreement and the penalties for breaking it.
A verbal exchange of promises may be binding and be as legally valid as a written contract, but is difficult to prove.

4. Did you know…
If you sign a contract it is legally binding on you regardless of whether you understand it or not, and regardless of whether you even read it!
The only exception to this is if you are forced to sign anything against your will. This is known as being under duress. But you would have to prove this.
“Sign it punk!”

5. Bi-lateral Agreement 2 parties exchange services or compensation:
Cell phone contract
Lease agreement
Service contract
Both parties are under legal obligation

6. Uni- lateral Agreement
Offering a reward for finding your lost dog.
“Anyone who wears red, white and blue tomorrow will get extra points…”
Only one party is under any legal obligation.