CONTRACTS ARE THE FOUNDATION OF COMMERCE
At the heart of virtually every commercial transaction is a contract, whether express or implied. Contract law is an area of the law that broadly affects nearly everyone. People regularly enter into numerous contracts, sometimes without realization until a dispute arises. When that happens, our experienced attorneys can help you efficiently identify your rights and obligations.
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A binding contract may be formed whenever there is an offer, acceptance, and what is known as consideration — a benefit gained from the contract. Arizona law recognizes that oral or verbal agreements can be binding.
When one party to a valid contract fails to perform, the other party may be able to compel performance or initiate a lawsuit to recover the non-breaching party’s damages incurred as a result of the breach. Nonperformance or breach of contract can have serious financial consequences, ranging well beyond the terms of the agreement. In Arizona, for example, the prevailing party may be awarded reasonable attorney’s fees and costs in contract litigation.
Arizona law allows written contracts to be enforced subject to a six-year statute of limitations, while valid oral contracts are enforceable subject to a three-year statute of limitations. Exceptions exist and certain circumstances can suspend or reset the applicable statute of limitations.
Certain contracts must be in writing to be enforceable. Examples include contracts in consideration of marriage (prenuptial agreements); contracts for the transfer of real estate; contracts for sale of goods in excess of $500.00; and contracts that cannot be performed within a year.