Contract law describes how businesses exchange goods and services. Whether you write your own contract or have a business attorney draft one for you, it's a good idea to know what goes into a legal contract. This article discusses contract law basics, the types of contracts, and what small business owners can expect in court.
What is a business contract?
Nearly all business dealings involve contracts, sometimes even when the terms are not written. Whenever a company agrees to an exchange of anything with value, it is generally bound by contract law. Common business contracts include employment agreement, purchase orders, bills of sale, and partnerships with other businesses.
Do I need to understand contract law?
No matter what type of business you run, you should understand contract law in order to create legally enforceable business agreements. You should know about small business programs available from the government, and your business plans should include ways to expand as your business grows. This will help you understand contracts and business law.
