what is an importance of contract formation in business law

What is an Importance Contract Formation in Business Law??

When drafting a business contract, it is important to understand the basics of contract law in case a dispute erupts.

The basic principles of contract formation are:

principles

of 

contract formation

Cooling-Off

Periods

Void Contracts

Voidable Contracts

Contract Parties

Cooling-Off

Periods

Void Contracts

Basic Formation

Requirements

Basic Formation Requirements

Basic Formation Requirements can cause problems when, for example, 

a purchase order is confirmed through the exchange of emails 

whose texts lack any clear statements indicating offer or 

acceptance. 

Cooling-Off Periods

The laws of most states allow a buyer of consumer goods to cancel the contract within 72 hours after signing it without stating a reason. These laws

are designed to protect consumers from high-pressure

sales tactics. In effect, a consumer contract in those states is not formed until 72 hours after it is signed by the buyer. These laws typically do not apply to contracts between

merchants.

Void Contracts

A contract is considered void if no true agreement ever occurred or if enforcing the contract would be contrary to public policy.

Voidable Contracts

Voidable contracts are contracts that may be canceled by one party at any 

time. Although a contract is formed, it binds only one party.

Contract Parties

the parties to a business contract are not individuals but limited liability entities such as corporations and LLCs.

PPT Based On Data From Lowell Milken Institute

PPT Based On Data From Lowell Milken Institute