Who Must Sign and Distribute a Contract before It Becomes Legally Binding Quizlet

When it comes to legal contracts, it`s essential to understand the parties involved and who must sign and distribute the agreement before it becomes legally binding. In this article, we`ll explore the various parties and their roles in the contract-signing process.

The Parties Involved

There are typically two parties involved in a contract. The first party is known as the offeror, and the second party is known as the offeree. The offeror is the party that makes the initial offer, while the offeree is the party that receives the offer.

Roles of the Parties

The offeror typically creates and presents the contract to the offeree. The offeror outlines the terms of the agreement and what is required of the offeree. The offeree then has the option to accept or decline the offer. If the offeree accepts the offer, they become the contracting party.

Who Must Sign the Contract?

It`s crucial to understand who must sign a contract before it becomes legally binding. The answer to this question depends on the type of contract and the parties involved.

In most cases, both parties must sign the contract for it to become legally binding. However, there are exceptions. For example, if one party has authorized another party to sign the contract on their behalf, then only that authorized party needs to sign the agreement.

In some cases, a witness may be required to sign the contract as well. This is often necessary if the contract involves a particularly important or sensitive matter, such as a real estate transaction.

Who Is Responsible for Distributing the Contract?

After the contract has been signed, it must be distributed to all parties. This responsibility can fall on either the offeror or the offeree, depending on the terms of the agreement. It`s crucial to make sure that all parties receive a copy of the signed contract. This ensures that everyone is aware of the terms of the agreement and can reference it if any issues arise.

Conclusion

Understanding who must sign and distribute a contract before it becomes legally binding is essential for anyone involved in contract creation and execution. Both the offeror and the offeree must sign the contract for it to be binding, although there are exceptions. Additionally, it`s crucial to ensure that all parties receive a copy of the signed contract for future reference. By understanding these principles, you can ensure that your contracts are legally binding and protect all parties involved.