CONTRACTS
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Q: What is a contract?

A: A contract is “an agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law,” (Black’s Law Dictionary, 7th Edition). This means the agreement creates terms, conditions, and obligations between each person to perform and abide by as long as those terms and conditions are legal under state and/or federal law.

 

Q: Who can sign a contract?

A: Any person 18 years old or older can legally sign a contract. Remember that signing a contract, whether it is for a car loan, apartment, employment, or any other legal document, places you legally responsible for everything within the contract. Therefore, make sure you carefully read and agree to all the terms and conditions in the contract before signing. 

 

Q: What are important things to consider before signing?

ABefore signing a contract:

 

Q: What if a party fails to perform their part of a contract?

AIf you or the other person fails to perform their duties and obligations stated in the contract, there are a few things that could happen.

 

Q: Do all contracts have to be in writing?

ANo. In Arizona, verbal contracts may be legal and binding. Although this is true, verbal contracts may be difficult to prove if a breach occurs. In order to have an official binding contract, under the statutes of fraud (A.R.S. §44-101), the contract must be in writing and signed by all parties who are held to the contract.

 

Laws may have changed since the last time this article was updated.  The current and most up-to-date laws can be accessed here.