Rental Agreement vs. Lease Agreement

When an individual is searching
for an apartment to rent, it is important that he/she understands the
difference between a rental and lease agreement. Understanding the way in which
an individual’s contract operates is a vital aspect of renting or leasing property.

Though the terms rental
agreement and lease agreement are frequently used interchangeably, it is
important to note the various differences that exist between these two types of
contracts. The type of contract that an individual enters into will determine
the responsibilities and the rights that he/she possesses while he/she is held
to this contract.

In addition, these contracts range in regard to the
responsibilities and rights maintained by the landlord who is renting property
to a tenant.

A lease agreement is a type of contract that
regulates the relationship between tenants and landlords. A lease agreement
will last for a specified duration of time. In many instances, this period
lasts for one year, though this may vary substantially. While the contract is
active, both parties are required to adhere to all conditions detailed in the
contract. No alterations can be made to the contract while the contract is
active. Therefore, a landlord cannot choose to increase the cost of rent.

The conditions associated with rental
agreements are slightly different. For example, these contracts function as
month-to-month contracts. Every month, a tenant can choose to renew his/her
rental agreement or leave the property. In addition, once the month ends, alterations
can be made to the rental contract. Therefore, a landlord may decide to
increase the cost of rent at the end of every month.

Both rental and lease
agreements have beneficial and disadvantageous features.

Quick Overview on the Credit Agreement

Definition of a Credit Agreement

As a commonly applicable feature and function of U.S. contract law, a credit agreement can be expected to comprise of the contract drawn up between a bank, or financial institution of comparable resources and functions, and another legal entity designated as the recipient of a financial loan from that institution. As such, credit agreements are allowed for under U.S. contract law, as well as the contract laws used in other legal jurisdictions, in order to allow for the availability of credit issued to individuals and organizations.

Provisions of a Credit Agreement

As with other kinds of contracts also put into effect in a commercial or financial context, a credit agreement can be expected to establish the legally binding conditions which will govern the functions allowed for or prohibited between the two parties to the contract, as comprise in this case of the bank furnishing the loan and the individual or organization accepting that loan. Perhaps most importantly, the interest charged on the loan will generally be affixed through the provisions set forth in the credit agreement.

The composition of a credit agreement might further function toward specifying the point, if any, when the loan must be repaid in full to the lending bank and thus when the legal relationship between the bank and loan recipient will come to an end, though often this will not be found to apply.

Potential Settings for Credit Agreements

Credit cards and mortgages are some of the financial instruments potentially subject to credit agreements.

Quick Overview of The Background of An Agreement

An agreement is the second essential step in creating a contract. A formal contract is now recognized by the signing of a contract. In an informal contract, which is a contract when signatures are not exchanged, acceptance is demonstrated by the actions of the two parties. In a bilateral contract, agreement occurs when the two parties accept the obligations placed on them. When a unilateral contract is in effect, agreement occurs when the offeree completes the action requested by the offeror.

The “meeting of the minds” as a standard for recognizing agreement has fallen out of favor due to the recognition that a court cannot assume to know what is within the mind of any individual. As a result, the court cannot possibly interpret the intentions of any party to a contract at the time they enter into the contract.

There are three tests which the courts use to determine if an essential element of a contract is missing. The first standard that the courts have adopted is the “reasonable person test.” The reasonable person test is designed to guard against any agreement which would be detrimental to the person agreeing to the contract.

When there are elements missing from a contract that is presented before the courts in dispute, the courts employs an “officious bystander test,” which states that terms can be added to a contract in the event that the terms would have been accepted by the parties if only they had been suggested during the negotiations.

The “business efficacy rule” states that a rule can be implied in the event that it would be included by any reasonable businessman in an attempt to make their businesses run more efficiently. The business efficacy rule only allows the courts to add the simplest terms which would lead to increased efficacy.

Read These Requirements of an Offer

In order to accurately understand the concept of agreement it is crucial to understand when a valid offer has been made. An offer is made when a party, known as the offeror, presents terms of a contract to another party. The party that receives the offer is known as the offeree. If the offeree accepts the offer, the two parties are considered to be in agreement.

In contrast to offers are “invitations to treat.” Invitations to treat are not offers. Invitations to treat can happen in a number of ways. Some of the most common include the display of goods in a store window, an auction without reserve, the solicitation of competitive bids, or advertisements for goods.

Except in specific circumstances, an auction does not constitute a legally binding offer and agreement process. An auction can be held with or without reserve. An auction without reserve is the rarer of the two kinds. An action without reserve means that the item will automatically be sold to the highest bidder regardless of the price.

An auction with reserve, or reserve auction, is an auction in which the person putting the item up for auction has stated a price below which they are unwilling to part with the item or circumstances under which they “reserve” the right to not complete the exchange of goods.

Auctions present interesting situations when considering offers and agreements. In an auction without reserve, the person placing the goods up for auction is obligated to accept the final bid. Each bid during the auction represents a new offer. Each higher bid that the auctioneer accepts means that the offer represented by the previous bid is invalidated.

During a reserve auction this can create some complications. If the person placing the goods up for auction decides against accepting the highest bid, they are left without an alternative. Even if the person would rather accept the second highest bid represented, they are unable to do so because the higher bid caused the previous bid to become voidable.

Advertisements are not usually considered to be offers because they may oblige the person creating the advertisement to sell more goods than they possess. As a result, an agreement cannot be reached as the result of an individual responding to an advertisement. Advertisements are technically considered “invitations to treat.” However, there are circumstances in which an advertisement can constitute an offer.

The Nineteenth Century case of Carlill v. Carbolic Smoke Ball Company in England involved a promise by Carbolic Smoke Ball Company to pay £100 to anyone who used their product but still developed influenza, which their product was claimed to prevent. As guarantee of their claim, the advertisement said that the company had deposited £1000 in an account to pay anyone who caught the flu. The advertisement was considered to be a unilateral contract.

The agreement by Louisa Carlill was twofold. The first part of the agreement can be seen in her purchase of the smoke ball and the second element of agreement was her continued use of the ball. The English Court of Appeals ruled that the advertisement became a legally binding contract on several grounds.

The most relevant part of the ruling was that while an offer existed between the company and the entire world, a contract only existed with those individuals who had taken the actions to accept the terms of the offer. Acceptance in this case is interchangeable with agreement. This case also cemented the idea that conduct was sufficient to convey agreement with the terms of the advertisement’s offer.

Agreements to agree are not considered legally binding. These legal documents only reveal that the concerned parties are considering a future contract. In and of themselves, an agreement to agree does not mandate action on the part of either party. Agreements to agree arise when two parties are discussing an event involving future transactions which are still in progress.

A statement of future intent is not a legally binding contract. It only indicates an agreement by the two parties involved in the negotiation to attempt to form a future contract. An agreement to agree is not binding if the matter under discussion is still in dispute. An agreement to agree may be considered a contract, however, if the material terms of agreement are present.

Agreements to agree can become legally binding agreements if they contain all the typical elements of a contract. If, however, an agreement to agree merely records the terms that have been discussed in preliminary negotiations or they can be given the full weight of a contract to which both parties have agreed. Agreements to agree are sometimes known as letters of intent. Whether the document is titled an agreement to agree or a letter of intent, the legal significance of the terms is equal.

In order for agreement to occur, the offeree must have an intention to enter into the contract. Intention can be interpreted by action or by verbal acceptance of the terms provided by the offeror. Intention also extends to the offeror. The offeror’s intentions are rarely subject to question.

Intention to form a contract is one of the requirements to form a contract. Intention to be legally bound by a contract does not exist during the initial negotiation of a contract. Courts generally do not assign intention to either party by their interpretation of the parties’ statements of future intent or by agreements to agree.

Subcontractor Agreement vs. Contractor Agreement

In order to understand the difference between a contractor agreement and a subcontractor agreement, it is first important to understand the difference between a contractor and a subcontractor. In many instances, a business will hire a contractor to complete certain tasks or duties.

A contractor is not considered to be an employee. Instead, a contractor will act as an independent entity, performing certain tasks for the company. A contractor agreement is an agreement that exists between a company and a contractor that the company hires. This agreement will be documented in written form.

The document will outline all pertinent features of the agreement, including the tasks that are to be completed by the contractor, the time period that the contractor has to complete these tasks, and the compensation that the contractor will receive for his/her work.

In order to successfully complete the tasks outlined in a contractor agreement, a contractor may be required to hire a subcontractor. A subcontractor is an individual who is hired by a contractor to provide the contractor with goods or services necessary to complete the tasks specified in an existing agreement. A subcontractor will be hired by a contractor after the contractor has been hired by a company.

A subcontractor agreement usually exists between a contractor and a subcontractor. It outlines information similar to the conditions detailed in a contractor agreement. In most instances, the contractor will be responsible for compensating the subcontractor and the subcontractor is required to complete certain tasks for the contractor. Both a contractor and subcontractor work together to complete specified duties for a company or an individual.

Find Out the Types of Agreement Here

Subcontractor Agreement vs. Contractor Agreement

A contractor agreement is a written agreement that exists between a company and a contractor hired by that company to complete specified tasks. A subcontractor agreement exists between a contractor and a subcontractor, who the contractor hires to complete the tasks outlined in an existing contractor agreement.

Non-Compete Agreement

A non-compete agreement is a written contract created by an employer and signed by an employee. When an individual begins employment with a company, he/she may be required to sign this type of agreement. Subsequently he/she will be prohibited from acquiring employment with a competing company or a similar company for a specified period of time.

LLC Operating Agreement

When a group of individuals chooses to create and operate a Limited Liability Company (LLC), it is vital that they develop an LLC Operating Agreement. This is an agreement between all members involved in the company which details all pertinent information. An individual can locate an LLC Operating Agreement template online to help him/her develop an Operating Agreement.

Cohabitation Agreement

When two individuals decide to live together, they should consider creating a cohabitation agreement. A cohabitation agreement is a legally binding contract that outlines the personal and financial responsibilities of each party. In addition, it addresses how assets will be divided in the event that the couple decides to separate.

Trade Agreements

Trade agreements are contracts that exist between at least two countries in order to govern and regulate trade between these countries. The United States has established an individual free trade agreement with numerous different countries. These agreements act to reduce the existing trade barriers and promote trade.

Understanding Cohabitation Agreement

A cohabitation agreement is a type of legal contract that exists between two individuals who live together. This type of legal agreement functions to ensure that a couple residing within the same home are protected from legal proceedings and costs if they choose to separate in the future. A cohabitation agreement will detail the rights and responsibilities of both parties.

In many ways, this type of agreement is similar to a prenuptial agreement. It will detail the financial responsibilities of each individual. For example, a cohabitation agreement may indicate that each party is responsible for contributing equally to the financial responsibilities that arise throughout the duration of their cohabitation. These costs may include rent or mortgage payments, utilities, and groceries, just to name a few.

In addition, a cohabitation agreement will detail how property is to be divided in the event that the couple separates. This contract will list which assets are to be designated to each individual upon separation. This agreement is particularly important when considering assets that were purchased by both parties jointly.

Other factors that may be covered in a cohabitation agreement include the financial and personal responsibilities of caring for any existing children and the responsibilities of each party in regard to addressing debt.

Many couples who decide to live together do not consider a cohabitation agreement. However, this contract is important to ensure that the rights of each party are upheld in the event of an unforeseen separation.

What You Didn’t Know About Non Compete Agreement

A non-compete agreement is a type of agreement contract created by employers, which prohibits employees from being employed by competitors or similar companies. Prior to working for a company, an individual may be required to sign a non-compete agreement.

This agreement will usually outline how long the agreement lasts and to what geographical location the agreement applies. After an individual signs a non-compete agreement, he/she will not be permitted to work for competitors of the company.

There has been an extensive amount of debate surrounding non-compete agreements. For example, it prohibits an individual from seeking employment in a field that he/she has experience in, thereby significantly limiting his/her employment opportunities. These agreements are also very difficult to enforce.

An employer would need to know where his/her past employees were seeking employment, and subsequently take the legal action necessary to prevent them from being employed in these locations.

Despite the many concerns regarding non-compete agreements and the flaws associated with this type of contract, there are practical reasons for using them. For example, some companies maintain confidential client lists to which employees have access. In addition to these customer lists, employees also have access to marketing strategies, new products, and additional confidential information. If a former employee chooses to acquire employment with a competitor, he/she may reveal this information, thereby adversely impacting a company.

A non-compete agreement is considered to be a legally binding contract, as long as the conditions outlined within the agreement are reasonable.

Understanding A Rental Agreement

Legal Context for Rental Agreements

A rental agreement is often referred to as a “lease,” particularly in the frequently applicable case of the specific rental agreement being in relation to the provision of a real estate holding. A rental agreement can more generally be noted as taking effect in the general context of contract law, and as with contracts in general, may be expected to provide for setting conditions in relation to the legal relationship between the two parties to the rental agreement.

In the event of a contract taking the specific form of a rental agreement, those two entities concerned with and signatory to the legal document will often be a landlord and a tenant.

Provisions to be Considered in Rental Agreements

A rental agreement can generally be expected to provide for such various issues inherent in a real estate contract as the person obliged to pay for tenancy and the individuals who will actually act as tenants, the date on which tenancy may be allowed to begin, the address and extent of the real estate subject to the rental agreement, and the financial payments to be payable to the landlord.

A rental agreement might also be granted to the real estate holding’s non-owner for a purpose other than residence, such as for parking transportation, storing property or others’ goods, transacting business, carrying out agricultural activities, or conducting the business required for a government agency or institution.

Loan Agreement

Legal Context and Purpose for Loan Agreements

A loan agreement can be noted in the overall context of contract law as a specific form which might be taken by the overall document of a contract, both in terms of the subject designated by a contract taking this particular form, as well as in the implied legal entities to be involved in such a legal agreement.

A loan agreement, which might or might not also be referred to as a credit agreement, can thus be noted as an agreement between a lender and lendee as to the conditions under which the loan is granted and the obligations which the lendee agrees to take on and grant legal force toward his, her, or their obligation to the lender.

Subjects for Loan Agreements

Some of the conditions, as referenced above, as might conceivably be applied for by the creation of a loan agreement could include the date by which the loan granted must be returned in full to the lender, or the interest which will be made necessarily payable to the lender at regular increments and at set amounts.

Loan Agreement Types

Loan agreements are typically distinguished in terms of being sorted between bilateral and syndicated loans, which refers to the specific type of lender furnishing the loan to the lendee. They may also be distinguished in terms of the facility involved, between term and revolving loans. Further areas for differentiation include secured/unsecured and fixed-/floating interest loans.

Agreement

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Quick Overview of The Background of An Agreement

Rental Agreement vs. Lease Agreement

Quick Overview on the Credit Agreement

Quick Overview of The Background of An Agreement

Read These Requirements of an Offer

Subcontractor Agreement vs. Contractor Agreement

Find Out the Types of Agreement Here

Understanding Cohabitation Agreement

What You Didn’t Know About Non Compete Agreement

Understanding A Rental Agreement

Loan Agreement

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