Contract Questions

1. What is required for a contract to be enforceable?

A contract is a legally enforceable agreement between two or more parties. It should meet the following requirements.

• Agreement: The parties must agree to enter into a contract and accept the terms of that contract
  
• Consideration: Something of value must be exchanged or promised
  
• Capacity: Both parties must be competent
  
• Assent: Both parties’ agreement must be genuine
  
• Legality: The contract’s purpose must be legal
  
• Conditions and Requirements: Every condition of the agreement should be listed
  
• Guarantees and Warranties: Formalize promises made by one party
  
• Form and Execution: Should be in writing and signed by both parties
  
• Remedies: Specify consequences if one party fails to meet contract conditions
  

2. Can parties digitally sign a contract?

Yes! You now have the option to attach a secure e-contract to every payment request on Good Dog. After your buyer receives and reviews the E-contract, they can digitally sign it with an eSignature and return it back to you. It’s important to note that manually typing your name into a document is not sufficient for a contract. eSignatures, however, are legally binding and enforceable. Your signed E-contract will also be safely stored with your buyer’s information in your Good Dog Dashboard, so you can access it any time you need to.

3. Do I need to call a contract a “contract” in order for it to be legally enforceable?

No. A contract should be given a name or title, but it does not need to be named a “contract.” The title of a contract should be concise and should reflect the main purpose of the contract. For example, many dog breeders refer to their contracts for the sale of a companion dog as a “Pet Purchase Agreement,” “Puppy Contract” or “Pet Sale Agreement.” The term “agreement” in a title is actually more commonly used than the term “contract,” but there is no difference in meaning.

4. What is a verbal contract and is a verbal contract enforceable?

When two or more parties come to an agreement without any written documentation, they create a verbal contract. Most verbal contracts are legally enforceable, as long as they satisfy the requirements necessary for a contract to be enforceable generally. However it is typically best practice to create a written contract in order to avoid any future disputes over a party’s obligations. It can be difficult to prove the existence of a verbal contract, as well as the terms the parties agreed to. If you do enter into a verbal contract, you might consider sending some form of written documentation (i.e., a letter or an email) confirming the agreed upon terms to serve as written proof that a valid contract was made.

5. What is a contract of adhesion?

A contract of adhesion is a contract drafted by one party (that typically has more bargaining power than the other party) and signed by another party. The party that signs the contract usually doesn’t have the power to negotiate or change the contract’s terms. Courts generally scrutinize and review these kinds of contracts very carefully and sometimes void certain provisions because of the possibility that the contract is unconscionable or unfair to the party that lacks the ability to negotiate any of the terms of the contract. An unconscionable contract is a contract that is so one-sided that it is unfair to one of the parties, making it unenforceable.

Disclaimer: This resource is provided for general information purposes only, and shall not be construed as legal advice on any subject matter. Any advice we provide does not create an attorney-client relationship. We are not acting as your lawyer and are not barred to practice in your state. We would recommend connecting with a lawyer in your state if you are able. Legal advice is dependent upon the specific circumstances of each situation and the law may vary from state to state. Some information in this resource center may not be correct for your state or for your specific circumstances. This resource was prepared only in accordance with U.S. law and does not reflect the laws of any other country. Good Dog expressly disclaims all liability in respect of actions taken or not taken based on any or all of the contents in this resource center.