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When to enforce a contract

One of the most common mistakes made by Michigan companies is not ensuring that their contracts are enforceable. The fact is that not all contracts are in fact binding. Thus it is important to understand when you must enforce a contract.

What exactly is an enforceable contract?

An enforceable contract is valid when a judge rules that both parties involved must go ahead and carry out the original terms of the agreement. A contract is also considered enforceable by the courts if both parties in dispute willingly accepted the terms and agreed to exchange something of value such as cash or physical assets.

When to enforce a contract

If you’re a business owner, then having a business law attorney at your side is critical to ensuring that your contracts are enforceable. However, the issue most people have is deciding when they should enforce a contract. Although most contracts should be enforced, there are other situations when extra precautions should be taken. For example, if a minor is a party to the agreement, the other party may state that the contract is not valid and thus have no legal obligation to carry out the terms.

When is an agreement not enforceable?

One should be careful to look for the clues of an agreement not being an enforceable contract. As stated above, one of the items that need to be apart of a contract for it to be deemed enforceable is the exchange of something of value. For example, if someone agrees to make you a company logo free of charge and then they back peddle on that promise, the courts cannot enforce it as no item of value was exchanged.

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