Business transaction law requires several things for any deal to be considered legally binding. It's important to get these details right, or you might face issues with a contract or an agreement down the road. Take a look at four aspects of a deal every business transaction law services provider encourages clients to address.
An Exchange of Consideration
No, this does not mean both parties have to start out by being nice to each other, although a lawyer would encourage that. Instead, consideration is a legal concept regarding what sits at the center of a transaction. If another person gives you a widget after you give them $10, for example, the widget and the $10 represent the consideration in the deal.
You'll note that transactions don't necessarily require contracts. Consideration is more than sufficient, and a contract isn't activated until the parties exchange consideration. Oral agreements are possible in large part because consideration sits at the center of business transaction law.
Written Instruments
Although a written agreement isn't 100% necessary, it makes life a lot easier. Such an agreement should outline an offer, and both parties should declare their acceptance with signatures. Likewise, some statement of the obligations both sides have to each other ought to be included.
Compliance With Applicable Laws
Depending on where and how the transaction is executed, laws at the local, state, federal, and even international levels might apply. For example, a transaction that carries goods across the borders of two states is all but certain to come under federal law through the Interstate Commerce Clause of the U.S. Constitution. In fact, transactions that affect parties in other states might come under federal law even if the deal itself takes place solely in one state. It's prudent to retain business transaction law services to address these sorts of issues in advance.
Note that parties can't waive compliance, even if it would be mutually beneficial for them to do so. Any transaction that subverts the law is not enforceable even if all other conditions have been met.
Delivery and Execution
In addition to all of these issues, a transaction must be executed. If real goods are involved, this means delivering them. A case involving intangible goods or specified actions must be executed, meaning the two parties must do whatever thing it is they've set out to do. Failure to deliver or execute under the terms of a transaction may be grounds for nullification or litigation.
