In Texas, a contract is different from a normal agreement in that the parties to a contract intend their agreement to have legal effect. Contracts might be oral or written, as long as both parties have the same understanding of the terms of the agreement. In business transactions, written contracts are generally preferred for their reliability. These documents are best drafted by those who understand the law, because the very reason for a contract is to legally obligate the parties.
Negotiating a Contract in Prosper
Negotiation of each particular term in a contract is important to ensure that the intent of each party is met. Also, there are certain clauses that should be included in every Prosper contract to give it the desired legal effect. The terms of the contract may be decided based on clear expectations if both parties are upfront about their intentions early on. Also, parties may want to discuss whether they need a provision for resolving any disputes under the contract.
Using a Form Contract
It may save you time to use a form contract instead of drafting your own. Even so, you may want an attorney in Prosper, Texas to add or remove provisions, or to simply make the contract language more clear. There are risks in using form contracts without the advice of an attorney. First, a party using a form contract may not have completely read all the terms, and can thereby remain unaware of his performance obligations and liabilities if events do not go as planned. Second, form contracts often contain language that is particular to the field of law, and using forms without an understanding of this language can cause future disagreements over a contract's meaning. Whether you negotiate or use a form, an attorney can help ensure that the written contract matches your intent. Many lawyers in Prosper are experts in Texas contract law.