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Make sure your contract is enforceable if something goes wrong

In order to conduct business and receive the best possible opportunity at success, it will likely be necessary to enter into agreements with other companies who can provide you with goods or services or to which you can provide goods and services. You enter into such contracts knowing that you will fulfill your end of the contract, and you want to trust that the other party feels the same.

However, there is always the possibility that the other party may not comply with the provisions of the contract. Therefore, you may want to make sure from the beginning that a Wisconsin court can enforce the contract if a breach occurs.

Making your contract enforceable

Before signing the contract, you may want to consider the following elements of an enforceable contract:

  • All parties to the contract have the legal capability of entering into it.
  • Neither party is signing the contract under duress.
  • Neither party is exerting undue influence to get the contract signed.
  • Neither party made false statements to entice the other to sign the contract.
  • The contract is fair, and the court has no reason to find it unconscionable.
  • The contract doesn't violate any laws or public policies.
  • Neither you nor the other party made a mistake that prevents either of you from fulfilling the contract.

If your contract meets the above requirements, it may be enforceable by a Wisconsin court if the other party breaches it. Due diligence is important when it comes to contracts. Understanding the capabilities of the other party and the ability to perform under the contract is an essential task.

Other considerations

The first task of the court in a breach of contract claim is to determine whether a valid contract exists. Second, the court determines its enforceability. After passing those two tests, the court will then consider whether a breach occurred, along with how to resolve it.

In making those decisions, courts may only consider what is actually in the contract. If you rely on statements made by the other party that are not in the contract, the court may not be sympathetic. Since the success of your business could be at stake with every contract it enters into, you may want help to ensure that the contract provisions provide you with the ability to take legal action if necessary.

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