Business contracts are legally binding arrangements between two or more entities where an exchange of value is made. The contract outlines the agreement terms and offers an agreement record enforceable in a court of law.

Contracts are available in varying forms, each having its purpose and use. If you require legal help reviewing a business contract in San Francisco, our business attorneys at Coepio Legal are here to help you. We offer professional contract reviews and enable you to save more than other law firms can. Read on to learn more about business contracts, and if you’re in need of assistance, reach out to the San Francisco business attorneys at Coepio Legal.

Implied and Express Contracts

An express contract is one that is openly or expressly stated either orally or in writing during contract formation. As a result, most people usually think of these contracts when considering what a business contract is.
However, there is more than one type of business contract. An implied contract is one that is inferred by facts, circumstances, and actions that would show a mutual desire to create a contract. Thus, these contracts are equally as binding as express contracts though they lack formal agreement. However, if a court of law recognizes doubt in the parties’ minds regarding the existence of the contract, it can opt not to enforce the contract.

Bilateral and Unilateral Contracts

Bilateral contracts engage both parties’ consent to exchange services or items of value. This type of business contract is also referred to as a two-sided contract and is very common.
On the other hand, unilateral contracts involve a single party agreeing to provide something valuable or take action. Thus, the contract is also referred to as a one-sided contract.

Aleatory Contracts

An aleatory contract is an agreement that is not activated until the occurrence of an outside event. An example of such is insurance policies, since they are agreements involving fiscal protection for unforeseen events. In these contracts, both sides take risks, with the insured paying for services they might never receive, and the insurer paying out potentially a more significant amount than that received from the insured.

Option Contracts

An option contract will let a party enter a different contract with a different party later. Entering the second contract is referred to as exercising the option. An excellent example occurs in real estate, where a potential buyer pays a seller to take the property off the market. The potential buyer then has a new contract to purchase the property outright if they decide to do so.

The San Francisco Business Attorney You Can Rely On

By having a written business contract, you can help protect your business and your investment. There are different state laws on agreements that need to be written to be enforceable and valid. Get in touch with Coepio Legal in San Francisco to learn everything you need to know about business contracts in the region.