A contract is an agreement between two or more people that exchanges something valuable. Typically, a person agrees to provide a service or deliver a good for a valuable consideration, such as money. Widespread commercial contracts in South Carolina include sales/sales contracts, sales contracts, service contracts, employment and competition contracts, real estate transactions and leases, licensing agreements and loan agreements. [i] The establishment of an enforceable contract begins with a meeting of minds on the agreement. Then contracts 1) require an offer, 2) acceptance and 3) consideration. [ii] Competence – competence is another issue that contractors face. To reach an agreement, each party must be responsible for the conclusion of the contract. Miners and lunatics, for example, cannot enter into binding contracts. The short answer is that contracts are necessary. In fact, they are one of the hallmarks of a well-established society and contribute to bringing stability to business and social interactions. Almost 15 years ago, I had the opportunity to spend two years in Kenya, Africa.
Kenya is not only one of the poorest places in the world, but also a place where contact is limited. In Kenya, as is the case in most developing countries, the lack of social and commercial contracts makes life too unpredictable. Companies that do not have enforceable contractual laws do not comply with the terms of the agreements, deadlines and data for the delivery, payment or guarantee of the quality of the products. Contracts often do not have to be written, but if the terms of an agreement are significant enough to warrant a detailed agreement, then it is a good idea to place the terms in writing. Most oral contracts are legally binding. There are a few exceptions, however, depending on the design of the agreement and the purpose of the contract. In many cases, it is best to draft a written agreement to avoid litigation. Fraud Act – The Fraud Act requires certain agreements and contracts to be signed in writing and by the parties.
The South Carolina legislator listed the situations in which a letter is required: ” (1) to give each executor or administrator a special commitment to claim damages under his or her own estate; (2) subject the defendant to a special undertaking of liability for the fault, failure or miscarriage of another person; (3) charges each person with any agreement reached after the marriage is taken into account; (4) charges each person with any contract or sale of real estate, rental or estate houses, or any interest in or in relation to it; or (5) to incriminate a person by an agreement that must not be concluded within one year of obtaining it.” [iii] When two parties enter into a contract, they each have responsibilities that must be fulfilled by both parties.