Articles & Resources

BUSINESS LAW - Contracts

Posted by T. Jake HinkinsOct 25, 20190 Comments

Sometimes people ask what types of contracts have to be in writing. There is actually only a very small subset of different contracts that have to be in writing. Those contracts are governed by what's called the statute of frauds, which lays out the different types of contracts that have to be in writing, But, for the most part contracts can be oral. Oral contracts are just as valid as written contracts they're just harder to enforce a lot of times. It's always nice to have a contract there as evidence. If you don't have a contract that's in writing, you still have the ability to say what the contract is.

Some of our business clients want to understand what a breach of contract is. In contract law, you have a few different components that create a contract and then a violation of those things would be a breach of the contract. You have to have an offer, acceptance and consideration or a bargain for exchange that creates the contract and a reciprocal situation.

If any of the covenants of the contract are violated or not upheld it would be considered a breach of the contract. Sometimes people ask if any breach counts toward voiding the contract. It depends on the contract. There are some contracts that could be voided if there is a material breach or a substantial breach and those things have to be pieces of the contract that are really important for the fulfillment of the contract. Sometimes, those things are laid out in the contract to say these are the material terms. Anything that doesn't completely coincide with what the terms of the contract are can be a breach, it just may not be a material breach.