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Binding contracts - is my partner correct ?

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C

cicsman

Guest
What is the name of your state? CA

My partner and I disagree as to what constitutes a legally binding contract.

He maintains that if we draw up a contract for services and it's signed by a service provider then the contract is binding at that point and we do not need to counter sign the contract or even send a copy back to the provider.

I'm of the opinion that both parties must sign in order for the contract to be valid.

Who is right ?. We have dinner riding on this so I hope it's me !

Thanks
 


I AM ALWAYS LIABLE

Senior Member
cicsman said:
What is the name of your state? CA

My partner and I disagree as to what constitutes a legally binding contract.

He maintains that if we draw up a contract for services and it's signed by a service provider then the contract is binding at that point and we do not need to counter sign the contract or even send a copy back to the provider.

I'm of the opinion that both parties must sign in order for the contract to be valid.

Who is right ?. We have dinner riding on this so I hope it's me !

Thanks

My response:

You're the one who's wrong. Sorry.

Signatures on a contract are a mere formality dating back to Feudal times. What counts in court was whether there was "performance" under the contract terms; i.e., Was there "ratification" by allowing the service to be performed as per the contract terms and conditions? That's what courts look to in a contract between parties.

I hope it's a Maine lobster dinner.

IAAL
 
C

cicsman

Guest
Thanks for the response.

Unfortunately it's going to cost me. But if I consider the peace of mind then it's probably worth the price :) .
 
Not sure...

Its seldom that simple. The bad news is, what's right, what's legal, and who wins in court and not always the same thing. We have had clients that claimed "we didn't sign the contract, so we're not paying"...our lawyers (one of the largest firms in the mid-west) said "a. its going to cost you a lot of money to sue, and you may not win; and b. are you never doing business with these people again? and c. you should not have begun work until you had a signed contract"

I'm sure <b>Liable</b> is right in quoting what the law says...is it good business practice? I don't think so...
 

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