Contracts are a vital legal tool, serving as a foundation which governs agreements made across a wide range of situations. Individuals, businesses, and other entities rely on contracts to define their rights and obligations. A breach of contract occurs when one party fails to meet their obligations, often causing harm and damages to the other party. Understanding the terms of a contract and its enforceability is crucial to protect your interest and mitigate any damages in the event of a breach.
The creation of a valid contract in Florida generally requires: (a) an offer; (b) the acceptance of the offer; (3) consideration i.e., a bargained-for exchange; (4) reasonably certain terms of the agreement; and (5) capacity of each party to enter into a contract. Except for specific types of contracts, Florida does not require a contract to be in writing to be enforceable. Thus, both written and oral agreements can become legally binding if they meet the requirements of a valid contract.
Even though oral contracts can be enforceable, written contracts are preferable to reduce the risk of disputes of the existence of an agreement, its terms, and conditions. An oral contract creates unnecessary challenges to overcome, including proving the existence of an agreement and the terms verbally contracted to.
There are certain contracts which must be in writing to be enforceable under Florida’s Statute of Frauds. These contracts include, but are not limited to, real estate contracts, contracts for payment of another individual’s debts, sale of goods valued at $500.00 or more, and contracts which cannot be performed within one year. For example, to satisfy the Statute of Frauds, an agreement to buy a house must be in writing containing the essential terms of the sale and signed by the person to be charged. However, in certain circumstances, a contract can still be enforced even if it does not meet the Statute
of Frauds’ requirements. A common defense to enforce an oral contract for the sale of land is part performance. Part performance can be shown through certain actions, such as making improvements to the property, living on the property, and payment of the purchase price.
When entering into a contract, it’s important to ensure its terms and enforceability. Florida’s contract law offers a reliable foundation for establishing expectations in an agreement. Understanding its key elements and requirements is essential for individuals and businesses to safeguard their interests. Whether drafting, reviewing, or enforcing a contract, consulting with an attorney can provide invaluable guidance in navigating contractual rights and obligations and pursuing legal remedies in the event of a breach. With years of experience, the Rice Law Firm is well-equipped to provide knowledgeable counsel in these matters and other legal concerns you may have. If you would like to consult with an attorney on these issues and other legal matters, please give us a call at 386-257-1222.
