Schexnaydre Law Firm, LLC

What Makes a Business Contract Valid in Louisiana?

Sound legal contracts are a necessity in business. So what's in a contract? A valid contract has four basic elements under Louisiana law:

  1. Capacity. The parties to the agreement must be legally capable of entering into a binding contract. For example, a contract may be unenforceable if one of the parties is a minor who is still under the legal authority of his or her parents.
  2. Consent. Mutual consent to the agreement is established through offer and acceptance. One party makes an offer; the other party accepts. Consent can be established verbally, in writing or by some action or inaction that indicates consent. But the surest way to establish consent is in writing. A good contract will make clear that the contracting parties mutually consent to the same things and in the same sense.
  3. Lawful Cause. When the cause of an obligation established by a contract is unlawful, the contract is legally unenforceable. For example, if enforcing the obligation would cause one party to commit a crime or violate public policy, the contract would be invalid.
  4. Lawful Object. A contract made for an illegal or impossible object is unenforceable. For example, a contract made for the purchase of illegal weapons would not be legally binding.

What are some examples of breach of contract?

Claims of breach of contract are based on a wide variety of circumstances.

A contract may be breached, for instance, if a company partnering with another company fails to cover the agreed-upon labor costs of a construction project.

Backing out of a lease agreement after an established cancellation date may also constitute breach of contract.

Breach of employment contracts is also relatively common, particularly with regard to noncompete agreements. An employee might breach a noncompete covenant by stealing company information or going to work for a competitor.

In many cases, nonperformance by one or more of the contracting parties results in breach of contract.

Lawsuits claiming breach of contract often involve additional claims, such as misappropriation of funds, deceptive trade practices, unjust enrichment, fraud and negligent misrepresentation.

Depending on the circumstances, plaintiffs claiming breach of contract can seek punitive and compensatory damages.

If you are ever involved in a contract dispute, go with a contract attorney with a proven record of success.

The contract lawyers of Schexnaydre Law Firm are prepared to handle all of the types of disputes discussed here, as well as disputes related to the following kinds of contracts:

  • Asset and stock purchase agreements
  • Confidentiality agreements
  • Shareholder and partnership agreements
  • Product sales contracts
  • Marketing contracts
  • Financial documents

Many disagreements over contractual obligations can be handled through methods of alternative dispute resolution such as mediation and arbitration, but other disputes require going to court. For more on the depth of our trial experience and areas of practice, please see the overview of Schexnaydre Law Firm, LLC.

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Schexnaydre Law Firm, LLC
2895 Highway 190, Suite 212
Mandeville, LA 70471

Toll Free: 888-339-0696
Phone: 985-231-1791
Fax: 985-235-1089
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