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The basics about contracts and business law

On Behalf of | Dec 30, 2020 | Business Law

Businesses in California, large and small, oftentimes come to find that their bedrock relationship with suppliers, vendors and other companies rely heavily on one thing: contracts. As a result, business leaders can usually benefit from knowing the basics about contracts and their relationship with business law.

Basics of business contracts

For starters, what is a contract? In essence, a contract is a legally binding agreement, in writing, that outlines the exact terms of the relationship between two parties, in most cases. So, for example, a simple business contract could outline the number of items to be purchased from one company by another, and the price and delivery expectations for those items.

If all goes well, the parties to a contract carry out their respective obligations with no problems. Sometimes contracts will be drafted to state that the terms of the contract will renew automatically, establishing long-term relationships between two companies. However, there may be times when problems arise. If one of the parties to the contract does not fulfill its obligations, that could be considered to be a “breach” of the contract. Litigation may ensue, either to attempt to recover damages or to attempt to have the breaching party perform the obligations outlined in the contract.

Professional help is available

Knowing the basics about business contracts is one thing, but each contract is different and may impact the rights and obligations of one company quite differently than any other. For more information about how our law firm attempts to help businesses in California that are facing legal issues related to business contracts, please visit the business law overview section of our website.

 

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