What Is a Contract?

In California, as in many jurisdictions, a contract is a legally binding agreement between two or more parties that creates mutual obligations. For a contract to be enforceable in California, it typically must meet certain criteria:

1. Offer: One party proposes terms to another.
2. Acceptance: The other party agrees to those terms.
3. Consideration: Something of value is exchanged, which can be money, services, or a promise to do (or not do) something.
4. Mutual Consent: Both parties must have a clear understanding and agreement on the terms of the contract.
5. Capacity: Parties must have the legal ability to enter into a contract, meaning they are of sound mind and of legal age.
6. Legality: The contract’s purpose must be lawful. Contracts for illegal activities are not enforceable.

In California, contracts can be written, oral, or implied, although certain types of contracts, such as those for real estate or lasting longer than one year, must be in writing to be enforceable under the Statute of Frauds. There are, however, exceptions to the Statute of Frauds as well.

If a party fails to fulfill their contractual obligations, the other party may seek legal remedies, such as damages or specific performance.

Understanding the specific terms and conditions of a contract is crucial for both parties involved.

Consult with a Los Angeles Contract Attorney

Breach of contract claims are extremely complex. For a confidential consultation with an experienced Los Angeles litigation attorney, contact Litigation, P.C., at 424-284-2401 or online to learn about your legal options. We routinely handle matters throughout SoCal.