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module three effects of state law on governing agreements overview earlier we briefly referred to how state and to a lesser extent federal laws can affect the contents of business governing agreements in this module well take a closer look at how state laws influenced the drafting of corporate bylaws LLC operating agreements and partnership agreements governing agreements are contracts for most contracts among private parties freedom of contract means that aside from establishing fundamental guidance for their validity such as the need for offer acceptance and consideration and providing for basic fairness such as consumer warranty protections legislators and courts leave the particulars of the agreements to the parties even if a contract is illegal or contrary to public policy the remedy is not generally to change the agreements content but rather to invalidate part or all of the contract because legally created business entities exist based on state laws allowing them to exist state
