What you should know before signing a contract?
How many times have you signed a contract without reading it? Do you know the Terms and Conditions of the contracts you are now bound to? Have you ever been surprised by the extra charges and fees you now have to pay for?
If your answer was “yes” to all these questions then it isn’t even a matter of choice whether you should carry on reading this article that decision was already made when after you signed your name on the dotted line.
Firstly, the requirements for a valid contract are the key to understanding the contract you are signing. These requirements are an agreement between parties whom have the capacity to contract. The content of the agreement must be definite and determinable, with the performance that either party has to undertake being legal and possible. The formalities of the contract must also be adhered to.
- Consensus: between the parties
- Capacity: parties must have the requisite capacit
- Certainty: the agreement must be definite or determinable
- Possibility: of performance
- Legality: must be lawful
- Formalities: must be complied with
These requirements are absolute, meaning that all of them must be complied with for the creation of a valid binding contract. These requirements remain the same for every type of contract.
Therefore, you must know what you are agreeing to before signing the contract. You must have the capacity to sign the contract. What either party must do in terms of the contract must be legal, possible and definite. Then the formalities of each different kind of contract must be adhered to, that is whether agreement to the contract should be oral or in writing.