Entering into an agreement with another business or party in Georgia often involves creating a contract. However, creating an enforceable business contract might not be as straightforward as it seems. To ensure that a contract will be enforceable in the future, one should consider its terms as well as the capacity of those who are signing it.
First, it is important to determine whether an agreement is actually a contract. In a valid contract, one party makes an offer that the other accepts. This means that neither party can simply assume an offer or acceptance on the other’s behalf — it must be explicit. A valid contract must also have sufficiently defined terms, including what each party is responsible for.
Even if a contract has all of these attributes, a court might still decline to enforce it. This sometimes happens when a contract’s terms are unreasonable or oppressive. A court might also rule that a contract is unenforceable if one of the parties did not have the capacity to sign. Minors or individuals with diminished mental capacities are generally not able to enter into contracts on their own. A contract might also be unenforceable if there was:
- Undue influence
- Duress
- Misrepresentation
It can be extremely distressing to learn that a business contract is not enforceable. This is why some Georgia business owners choose to speak with knowledgeable attorneys before signing anything. Reaching out to a knowledgeable party can also be helpful when trying to enforce a contract with which the other party is not complying.