Drafting and Reviewing Agreements and Contracts
You should schedule a consulting with one of Pax Law’s contract drafting and review lawyers if you are negotiating or signing a new contract. Often, parties enter into agreements without fully understanding the consequences and terms of those agreements, and after suffering financial losses, they realize that early engagement of lawyers in drafting the agreement could have saved them time, money, and inconvenience. Pax Law can help you with negotiating and drafting the following agreements:
- Shareholder agreements.
- Joint Venture Agreements.
- Partnership agreements.
- Share purchase agreements.
- Asset purchase agreements.
- Loan agreements.
- Licensing Agreements.
- Commercial lease agreements.
- Contracts of purchase and sale for businesses, properties, fixtures, and chattel.
Elements of a Contract
In British Columbia and Canada, entering into a contract can happen easily, quickly, and without you signing any document, stating any particular words, or expressly agreeing to a “contract.”
The following elements are required for a legal contract to exist between two legal individuals:
- Intention to enter into legal relations; and
- Meeting of the minds.
The offer can be in writing, given through mail or email, or spoken verbally. The acceptance can be given in the same manner as the offer was given or communicated to the offeror in a different way.
Consideration, as a legal term, means something of value must be exchanged between the parties. However, the law does not concern itself with the “real” value of the consideration. In fact, a contract where the consideration for a house is $1 would be valid if all the other elements of a contract are present.
“Intention to enter into legal relations” speaks to the objective intention of the parties as it would be interpreted by a third party. It means that a third party should conclude, based on the communications between the parties, that they intended to have a legal relationship based on the terms of the contract.
“Meeting of the mind” refers to requirement that the two parties have both agreed to the same terms. For example, if the buyer believes they are buying for $100 for they communicate their acceptance of the contract when the seller believes they are selling for $150 when they communicated their offer, the existence of a real contract could be called into question.
Why should you retain contract drafting and review lawyers?
First, it is not always a good idea to retain a lawyer to draft or review your contracts. Lawyers often charge hourly fees in excess of $300 per hour, and for many contracts their services would not be worth the money they charge.
However, in some instances, it is a good idea, and even essential, to obtain the help of lawyers. If you are signing a contract that is worth a lot of money, such as a home purchase or presale agreement, and you do not have the time or expertise to read and understand your contract, speaking with a lawyer can assist you.
If you are signing a contract that can have long term consequences for you, such as a commercial lease agreement or a long-term licensing agreement for your business, retaining a lawyer will be crucial in protecting your rights and understanding the terms of the agreement you are signing.
Additionally, some contracts are so long and complicated that you will be significantly endangering your future interests if you negotiate and sign them without assistance. For example, contract drafting and review lawyers are essential in the process of buying or selling a business through a share purchase agreement or an asset purchase agreement.
If you are in the process of negotiating or signing a contract and need contract drafting and review lawyers, get in touch with Pax Law today by scheduling a consultation.
Yes. Any person can draft contracts for themselves. However, you might endanger your rights and increase the liability to yourself if you draft your own contract instead of retaining the assistance of a lawyer.
Only lawyers are qualified to draft legal contracts. Sometimes, real estate professionals or other professionals assist their clients with contract drafting, but they often do not have the legal training to draft proper contracts.
Lawyers understand the law and understand how a contract ought to be drafted. They can draft the contract in a manner that will protect your rights, reduce the possibility of conflict and expensive litigation in the future, and make the negotiation and execution of contract easier for you.
It depends on the complexity of the contract and how long it takes for the parties to agree. However, if the parties are in agreement, a contract can be drafted within 24 hours.
The following elements are required for the creation of a legal contract:
4. Intention to create legal relations; and
5. Meeting of the minds.