Resolving Contract Disputes with Strategy, Skill, and Results

A contract is a legally binding agreement between two or more parties that creates mutual obligations enforceable by law. Contracts can be written or oral and must include an offer, acceptance, consideration, and mutual intent to be bound. They are essential in various transactions, including business deals, employment agreements, and sales of goods or services. In California, contracts must comply with state laws and regulations to be valid. Understanding the terms and conditions of a contract is crucial to ensure legal protection and enforceability.

An oral contract can be legally binding, but it is often harder to prove than a written contract. In California, certain agreements, like those involving real estate or contracts that cannot be performed within a year, must be in writing to be enforceable. Without written documentation, enforcing an oral contract relies on witness testimony and other evidence. Disputes over oral contracts can be more complex and challenging to resolve. It is advisable to document agreements in writing to ensure clarity and legal protection.

The statute of limitations refers to the time limit within which a lawsuit must be filed. In California, the statute of limitations is four years for written contracts and two years for oral contracts. This period starts from the date of the breach or when the breach should have been discovered. If the lawsuit is not filed within this timeframe, the right to sue may be lost. Understanding these deadlines is crucial to protect your legal rights in contract disputes.