When multiple parties make an agreement to build one or more structures, any number of legal issues can arise to spark delays or to impede a project’s completion. It is imperative for all parties to clearly understand the terms of their agreement before signing any documents or before agreeing to a verbal contract. If a construction law dispute arises, the court will determine whether the contract in question is enforceable.
Not all agreements constitute formal contracts. For instance, if one person invites another to meet at a certain place and time for lunch and the other agrees to it, the agreement the parties have proposed would not typically create a legally enforceable contract. Several conditions must be met for a valid contract to exist.
Offers, acceptance and exchange of value
For the court to determine that a valid contract exists between two or more parties, there must be evidence that an offer was made and accepted in exchange for something of value. This “something” might include a service or a promise to fulfill an obligation after the contract is signed or verbally accepted. The terms of agreement must be clearly defined for a contract to be enforceable.
Reasons for finding a contract invalid
If the court finds that there is evidence to show that a person was under duress, was coerced or threatened in some way to get him or her to agree to the terms of a contract, a judge may rule that the agreement is invalid. This may also be the case if there is evidence of misrepresentation or fraud. Anyone in California who is concerned about legal problems regarding a construction contract may seek guidance by requesting a meeting with an experienced construction law attorney.
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