At its core, severance agreements are contracts. Most people know what a contract is. It’s an agreement where two parties are bound to do something. And it’s only binding if a party gets something for signing on the dotted line.
This “something” is known as “
consideration” in the legal world.
When most people think of contract law, they think of executives making deals. Or perhaps sports players signing huge multi-million dollar contracts.
What most people do not realize is that most people actually deal with contracts quite regularly.
When you sign up for your cell phone service, you are signing a contract. You obligate yourself to pay the bill. And your phone provider obligates itself to provide you service.
You could probably think of numerous scenarios in which you signed a contract. If you downloaded a video game,
you have to sign the user agreement before playing. Here’s
Ebay’s:

If you venture to Ebay’s website, you will notice that the actual agreement is incredibly long. And that it is broken into 19 different subparts. That’s a lot of reading.
Although user agreement contracts have been scrutinized for varying legal reasons, they are contracts that we sign often. Some of us, every day. And most of the time, we do not read them.
When you think about contract law, you should think about creating laws. When you enter into a contract, you have created law between you and another entity/person. Those words you agreed upon are legally binding.
And, if you breach (break) the contract, your employer can sue you.
This is why having a lawyer guide you through signing the severance process is important. You will create better law if you have a lawyer helping you out.