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Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Growing a business may mean understanding and using contracts

Starting a business comes with numerous details to consider. Of course, growing a business also comes with concerns, and in many cases, bringing in outside help and creating business relationships presents the need for contracts. If Colorado entrepreneurs have not utilized contracts before, they may need some basic information to help them get started.

Contracts must include certain elements in order for them to be legally binding. For instance, the purpose of the contract must be legal and enforceable under applicable laws. If a contract is created for an unlawful purpose, it offers no protection in the event that the other party does not follow through. Additionally, the parties entering into the contract must be competent, meaning of legal age, sound mind and not impaired at the time of the agreement. Plus the agreement must be made freely, which means no one was coerced into signing and that no fraudulent actions were taken to get a party to sign.

The agreement must also be mutual between all parties. This can include agreeing to all the terms included in the agreement, not just some of them. The terms of the contract must also involve all parties giving up something of value in the exchange. For example, a person hiring a contractor will likely give up money in order to have the work completed, and the contractor will give up time and labor to complete the work.

Contracts can be a necessary tool for growing a business, and it is vital that they are created correctly. If Colorado residents are coming to contractual agreements for the first time, they will certainly want to ensure that their best interests are protected. Interested parties may want to work with attorneys experienced in business law who could help draw up important legal documents.

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