CONTRACTS

Posted on May 11, 2016 · Posted in Business & Corporate Law

       For a contract to be enforceable in Pennsylvania there must be consideration.  Consideration consists of a benefit to the promisor or a detriment to the promisee.  If there is no consideration between parties then there can be no contract.  A little known exception to this rule is found in a Pennsylvania statute enacted prior to 1937.  This statute provides that if an agreement contains the language “intent to be legally bound”  in a conspicuous place in the agreement, this phrase then provides the necessary consideration for an agreement to be considered enforceable.  There are limited exceptions to this statute; however, in general, if an agreement contains this language there is a valid enforceable contract.  We at Stover McGlaughlin would be happy to serve your needs in the drafting or review of any type of contract.

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