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In California, contracts between two or more parties are formed every day.  Under California law, a contract involves an offer, acceptance, and consideration.  An offer is a written or spoken statement by a party of his or her intention to be held to a commitment upon the acceptance of the offer. There are a number of factors to look at to determine whether a statement constitutes an offer, which an experienced contracts lawyer can discuss with you at length. Next, the other party must accept the offer.  In order for an acceptance of an offer to be valid, the acceptance must be made while the offer is still open. Finally, to solidify the contract, there must be consideration. Consideration is a legal concept that means something of value is given in exchange for a performance or a promise to perform. Consideration can be money, goods, a promise to do something there is no legal obligation to do, or a promise to not do something there is a legal right to do.

If you are involved in a business agreement, one of the first things to determine is whether the promise or agreement at issue will be considered an enforceable contract under the law.  Not all promises are contracts. The California courts examine a few factors when deciding whether a valid contract was formed between parties.  Initially, the court must determine whether the agreement constitutes a valid contract. For example, one party must have made an offer and the other party must have accepted it. There needed to be a bargained for exchange of promises, meaning that something of value must have been given in return for a promise. In addition, the terms of a contract needed to be sufficiently definite so that the court can enforce them.

California courts take contracts between parties very seriously.  If you believe you formed a valid contract with someone, such as your employer or another individual, and are having trouble enforcing the terms of the agreement, contact a skilled business lawyer today.