Your business partnerships in Daytona Beach are much more clearly defined when you have a contract in place. Yet as many of the companies that we here at Smith Bigman Brock have worked with in the past can attest to, simply having a written contract does not mean that such an agreement is valid (and, by extension, enforceable). It is the language and terms within a contract that confirms its validity.
One of the basic elements that must be present in order for an agreement to be considered a contract is consideration. The Florida Bar defines "consideration" as "the exchange of promises to act and/or provide goods, services or money." Essentially, your contract consideration is the mutual benefits both you and your partner will receive from the agreement. For example, if you are a service provider, then the benefit your partner receives is your services. Your benefit is the payment for those services (or other services received in return). A contract cannot be "one-sided," or have benefits so heavily offered to one party of the agreement in order to be considered valid.
Because of this requirement for consideration, an agreement in which only you or your partner directly benefit is not considered a contract. However, that is not to say that a contract can be created to resolve a debt or liability. You can agree to accept services in exchange for the prepayment of a debt. Similarly, you can also agree to enter into a contract in exchange for the promise to not seek legal action against another.
You can learn more about the required elements of a contract by continuing to explore our site.