A contract is a legally formulated document which is formed between two or more than two parties and creates legal obligations between the parties. A contract may either be written or verbal. A contract basically consists of 4 main elements which are offer and acceptance, intention to be legally bound consideration and mutual assent. There are many things which have to be kept in mind while framing a contract because even a little mistake can make a contract void.
Some of the mistakes which can make a contract void are mutual mistake, unilateral mistake, allocation of risk, mistakes relating to documents, mistake relating to identity, lack of specificity, failure to reach agreement, defective contracts and failure to negotiate. We can say a contract is void when it is written for an illegal act, when it is for committing an act against the public policy, if the event written in the contract is impossible to execute and if there is a proof that an illegal act occurred to force an individual to sign the contract. While negotiating contracts, one should keep in mind to not combine multiple contracts, not excluding detailed payment terms, not accepting partner’s explanations and not starting before the execution has finished.
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