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6 Replies Last post: Aug 12, 2008 3:14 AM by alaskasnowguy

Help on the definition of a legal binding contract.

Aug 11, 2008 3:28 AM

Click to view alaskasnowguy's profile Professional alaskasnowguy 5 posts since
Aug 10, 2008
I use a service agreement contract that I wrote up, and it was intended to be legal binding.

I recently signed a corperate client. Couple months go by and find out my contact (person in charge of signing contracts) has left the company. His boss told me my contract was not legally binding and that he could get out of it.

Does service agreements and contracts have to be prepared by a lawyer to be legal binding? In order to hold up if a employee of a company leaves?

Any help would be great.

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Click to view LUCKIEST's profile SCORE LUCKIEST 7,938 posts since
Aug 6, 2007
1. Re: Help on the definition of a legal binding contract. Aug 11, 2008 7:37 AM
Help on the definition of a legal binding contract

I am NOT a Lawyer. Was the contract signed by both you and this corporate client??

A signed contract is usually binding. (In the old gays, a handshake was binding)

Everybody in business should have a Lawyer, An Accountant and an Insurance Agent.

Good luck, LUCKIEST
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Click to view alaskasnowguy's profile Professional alaskasnowguy 5 posts since
Aug 10, 2008
2. Re: Help on the definition of a legal binding contract. Aug 11, 2008 4:37 PM
in response to: LUCKIEST
Yes both of us signed and dated the contract.
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Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
3. Re: Help on the definition of a legal binding contract. Aug 11, 2008 5:47 PM
My question to the boss would have been (or would be), "Why would you WANT out of the contract? Your man negotiated tough, and you're getting a great product/service from me at a great price. . . Why in the world would you want out of a deal like that?"

If there's a good reason, it doesn't make sense (to me) to try to bind a customer with legal ties if he doesn't want to do business with you. It's only going to create resentment that may do you more harm than the revenue is worth. On the other hand, if the boss doesn't have a good reason, you get a chance to sell and close him (the REAL decision-maker) . . . which could mean the contract gets renewed in the future and you get some good referrals.

Hope that helps. Best wishes.
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Click to view alaskasnowguy's profile Professional alaskasnowguy 5 posts since
Aug 10, 2008
4. Re: Help on the definition of a legal binding contract. Aug 11, 2008 11:08 PM
in response to: Lighthouse24
He didn't ask to get out of the contract.

He made a remark to that effect and I was just curious.

And thats funny you say that, cause thats pretty much what I told him, that for the level of quality in the services I provide he won't find a better deal. But the contract that was signed pretty much gave me a open ended ticket on some items as long as I don't charge above the standard pricing for my industry.

He should be happy I am a honest business guy.

It just got me curious/thinking when he made a remark to the effect that my contract wasn't legally binding and that he could get out of it.

Guess now would probly be a good time to get aquainted with a lawyer. Anyone got suggestions on the type of lawyer that handles this type of stuff?

As for binding the customer with a contract its quite simple. In snow removal its hard to show the banks when trying to aquire new equipment your projected income and ability to repay the debt. When you don't have a contract showing them your amount of accounts you have. Also its kind of like a pay scale sheet, so the customer knows all my prices up front. And finally keeps them from getting different snow services from other companies when I know they are signed on with me.

And in this case it worked out cause if I wouldn't have got the contract signed when i did all my good deals wouldn't have mattered cause the new guy could have somone else in mind, if you know what I mean.

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Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
5. Re: Help on the definition of a legal binding contract. Aug 12, 2008 12:26 AM
in response to: alaskasnowguy
You'd be looking for an attorney who knows contract law (which would probably be anyone with a practice that specializes in commerical law). For a contract to be binding, you basically have to show that all parties were competent to enter into the contract, that the contract involved a legal exchange of something (like money) for something else (like a service), and that there was an agreement to terms (which a signed deal goes a long way in demonstrating). Some of the typical things that can void a contract are when one party was underage or mentally impaired at the time, when the exchange involved something illegal or illicit, when there was no "meeting of the minds" (again, a signed contract strongly suggests that there was), and when one party or the other misprepresented something or failed to perform. Good luck!
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Click to view alaskasnowguy's profile Professional alaskasnowguy 5 posts since
Aug 10, 2008
6. Re: Help on the definition of a legal binding contract. Aug 12, 2008 5:34 AM
in response to: Lighthouse24

Thanks for your imput.

I highly doubt then that he can get out of the contract, probly was just wishful thinking outloud.

Anyhow gonna go look up lawyers to get one working with me, defintly can't hurt to have a lawyer go over things. :) thanks again
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