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Another Update on Legal Forms… Where’s the legal authority? Look at the context!
Feb 04

Online Legal Forms – Are They Valid and Enforceable?

Business Law Add comments

So when I tell people about the upcoming online legal forms project, a lot of people naturally respond: “Are they valid and enforceable?”  The answer to that question, as always, is going to be: “It Depends”.  Think of it like this.  You download a template.  It is incomplete.  You read it over and finish it.  Then you and another party sign it and deliver it to each other.   So, is it a valid and enforceable contract?  Believe it or not, this simple situation still results in the answer: “It Depends”.  It depends on how the contract was entered into.  For example, if the contract was entered into under duress, by undue influence, through a misrepresentation (negligent, fraudulent, innocent, etc.), or it was an unconscionable contract, then a party may claim that it is invalid and they might be entitled to undo the contract!  So, if procedurally, it was entered into properly, can the substance of the legal form make it unenforceable?  Sure!  If there’s something missing which typically makes a contract enforceable – such as an exchange (called “consideration”), clear and certain terms, an offer and acceptance, etc. – then the contract may be challenged as not being valid and enforceable.   So what does this have to do with online legal forms?  Well, not much.  you see, you could go to a book store or a library and see books with legal forms and use those legal forms. You could also ask a friend or relative for a sample of a legal form they’ve used in the past.  It makes no difference.  Legal forms are simply templates.  But the way in which the contract is entered into and the actual substance of the contract is what matters.  The substance will depend on the drafter, their skills, knowledge, and experiences.  The best legal forms are simple to understand, cover the basics, devoid of legalese, etc.   Each legal form we plan on offering has been drafted, reviewed, and revised over the course of a number of days to make sure that it covers the basics, that it is easy to understand and customize, etc.  So the answer is: as with any agreement that you can acquire, there’s always a chance it can challenged.  Even legal agreements drafted by lawyers are not necessarily bullet-proof.  Having a good lawyer, however, can help mitigate or eliminate the ability of other parties to challenge a contract.

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