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Contract Law

Contract In Depth

Contract In Depth

A contract is a legal document which may be enforceable by legal action or by binding arbitration. In order for this to be true, however, the contract agreement must meet several important requirements. 
There must be a compensatory remedy for the contract under which the party which defaults is required to pay monetary compensation that would have otherwise been provided had the contract agreement been upheld, or an equitable remedy, which can also be called Specific Performance. The equitable remedy, or specific performance, compels an individual who enters into a contract agreement to carry out the action against which they have attempted to renege on their obligation. 
In order for a contract to be valid, the contract must involve unqualified, or “mirror”, acceptance. In order for a contract agreement to be valid, all parties must have the capacity to contract, and the terms of the contract cannot be trifling, indeterminate, or impossible. In the eyes of the law, a contract cannot be entered into to compel illegal action.
Although a contract is usually written in order to compel action, a contract agreement can also be created which will prevent a person from performing an act which they have the legal capacity to perform.
If a contract agreement is breached, legal remedies may be provided to address that breach.
Contract law, the legal field that specializes in the legal disposition of contracts and contract agreements, generally adheres to the Latin motto “pacta sunt servana,” meaning “pacts [agreements] must be kept.”

What Can A Contract Software Do For You

What Can A Contract Software Do For You

Contract software can provide
free contract templates for individuals to use when, in the course of their
business or personal dealings, they encounter the need to form contracts. In
addition to purchasing contract software for the express purpose of creating
contracts, in many cases companies are able to obtain free contract templates
online in order to accomplish their contract creation needs. The contract software
that is used may be customized for use by a company, or the contract software
may simply be used as they are originally obtained.

Free contract templates may be
used to create a standard form contract, which are also known as a boilerplate
contract or an adhesion contract. Whether paid or free, contract templates can
save an individual or enterprise substantial amounts of time, cost, and effort
that would otherwise be associated with the creation of a contract.

Contract software can be
drafted using free contract templates to help facilitate the use of contracts
and services. Contract software which an individual or enterprise obtains can
make use of free contract templates in order to allow the party that is
drafting the contract and then offering the contract to the other party, a
resource which can help them to make the contract more likely to stand up to
scrutiny in a court of law, as well as making sure that the free contract
templates which they use will provide for their particular needs.

All You Need to Know About Restatement of Contracts

All You Need to Know About Restatement of Contracts

The Restatement of Contracts is one of the most widely recognized and most frequently cited legal treatises that is part of jurisprudence in the United States of America. It is taught to most American law students during the first year of law school. It is the most-cited non-binding authority in common law in the United States.
The Restatement of Contracts is a peerless work in terms of overall influence and recognition among individuals on both the bar and the bench. The only possible rival for its recognition is the Restatement of Torts. The Second Edition of the Restatement of Contracts was begun in 1962, with the American Law Institute completing its compilation in 1979.
The general purpose of a restatement of the law is to allow judges and lawyers to have a general understanding of a set of treatises on legal subjects. The Restatement of Contracts allows individuals to have a general understanding of the principles of contract law. The Restatements of Contracts is one of the twenty three Restatements compiled by the American Law Institute.
The Restatement of Contracts is not legally binding, but it carries a great deal of weight and is highly persuasive because it represents the thoughts of prominent legal professors, practicing attorneys, and judges. The Restatement of Contracts is a reflective consensus reached by the American legal system and professionals, both of what the law is and, in rare cases, what the law should be.

What are the Legal Actions To Take Against A Breached Trust

What are the Legal Actions To Take Against A Breached Trust

A breach of trust can occur in any number of circumstances, and in
each case there may be a differing form of legal recourse. When the breach of
trust is included with a breach of contract, there may be both legal and civil
penalties. 

 

For example, if there is a breach of contract between a day care
center and a parent, it may also include a breach of trust. If the day care
center took responsibility to care for a child and then failed to do so, they
may be charged with both breach of contract and breach of trust.

 

The result of those activities may influence whether or not the
charges are criminal or civil. If, for example, the child was injured because
of a failure to care for that child as promised, the charges would likely be
civil and criminal.

 

Simple Guide to Verbal Contracts

Simple Guide to Verbal Contracts

In the
United States, verbal contracts will usually refer to unwritten or oral
contracts. An unwritten contract will usually mean that the contract or
agreement was made through the use of spoken words as opposed to formally
writing and entering into record the provisions of said contract.

The United
States has laws that will recognize verbal contracts in a court of law and
enforce the agreed upon provisions in the case of a dispute. However, because
verbal contracts are oftentimes unwritten contracts, there will be inherent
problems involved in a legal dispute surrounding verbal contracts.

The most
common issue which arises is that verbal contracts are extremely hard to prove
to have ever actually occurred in the first place. Evidence such as witnesses
and an overall preponderance of evidence will be necessary to prove that a
party violated verbal contracts. Therefore, it can be deemed that unwritten
contracts, as opposed to formally written contracts, are not weighed as heavily
or given the same legal merit in a court of law due to the lack of actual
physical evidence of the contract.

Privity of Contract Explained

Privity of Contract Explained

Privity of contract is a legal
doctrine that holds that a business contract, along with any other type of
contract, may not confer rights or impose obligations to any person or agent
except for the specific parties that have formed the contract.

Privity of contract is most
commonly an issue which arises during business contracts that have been formed
to allow for the sale of goods or services. Horizontal privity of contract
becomes an issue when the benefits bestowed by a contract are given to a third
party or a party that was not a part of the original contract. Vertical privity
of contract involves an independent contract that develops between one signer
of the original contract and another individual or other legal entity.

There are certain circumstances
under which privity of contract may be set aside which will allow the legal
entity who is not directly a part of the business contract to be allowed to sue
to force a party to the original contract to uphold their obligations. Privity
of contract will only allow a third party to the contract to go against one of
the original parties to the contract beyond the ability to collect the third
party’s entitlement to a benefit under the contract.

Important Facts About Breach of Contract

Important Facts About Breach of Contract

What is a Breach of Contract?
A breach of contract occurs when a party, who agreed to formulate a contractual obligation with another party, does not carry out the intended function of the contract. As a result, a breach of contract is a legal cause of action where the binding agreement latent in the contract, is not honored by one or more of the parties to the contract. 
A breach of contract can result in an individual not carrying-out a specific performance that was expected by the contract or by interfering with the other party’s ability to perform the task. 
If a party, who agreed to formulate a contract with another party, does not fulfill his or her contractual promise or has given information to the other party that he or she will not perform his expected duty as labeled in the contract, the party is said to have performed a breach of contract. In addition, if the individual is unable to perform the obligations latent in the contract for whatever reason, a breach of contract is present. 

Types of Breaches:
Minor Breach of Contract: A minor breach of contract constitutes a party’s inability to perform the full task expected by the contract; a minor breach of contract is referred to as an immaterial or partial breach of contract. In these instances, the non-breaching party cannot sue for specific performance, and can only seek legal action for actual damages sustained. 
Material Breach of Contract: A material breach of contract is realized through any failure to perform, which ultimately permits the other party to the contract to collect damages because of the breach or compel performance. 
Fundamental Breach of Contract: A fundamental breach of contract is a breach that permits the aggrieved party to terminate performance of the formulated contract. In these scenarios, the non-breaching party is entitled to sue the breaching party for damages sustained. 
Anticipatory Breach of Contract: A breach of contract through anticipatory repudiation is an unequivocal indication that the party refuses to undertake the project or deliver performance as stipulated in the contract. Included in this type of breach, is a situation where a future non-performance is inevitable. This type of breach of contract allows the non-breaching party the option to treat the breach as immediate, which ultimately allows them to terminate the contract and sue for damages, without waiting for the actual breach to take place. 

Remedies of a Breach of Contract:

In most instances, the judicial remedy for a breach of contract is the delivery of monetary compensation for damages incurred. If the failure to perform or satisfy the contractual obligation cannot be redressed through monetary compensation, the underlying court may enter an equity decree, which will award an injunction or the delivery of a specific performance. 
The aggrieved person possesses the obligation to mitigate damages through reasonable means. In the United States, under contract law, punitive damages are typically not awarded for a breach of contract but may be awarded for other causes of action in a lawsuit. 

Government Files Lawsuit against Fluor Companies

Government Files Lawsuit against Fluor Companies


On November 8, 2012, the Department of Justice announced that the United States government is intervening in a case against Fluor Corporation and its subsidiary, Fluor Hanford Inc, after the Texas-based companies used federal funds for lobbying activity.  The lawsuit for violations of the False Claims Act was first filed by a whistleblower, Loydene Rambo.  


According to the Justice Department, Fluor had a contract with the Department of Energy (DOE) for multiple services at the Hanford Nuclear Site in Washington State between 1999 and 2008.  The facility is federally funded.  


According to the original complaint, part of the DOE contract stated that Fluor could not use the federal funds for lobbying.  The whistle blower’s complaint alleged that Fluor used the funds for lobbying from 2005 to 2008 anyway.  The company hired two lobbying firms, Secure Horizons LLC and Congressional Strategies LLC, to lobby members of Congress and federal agencies.  


The United States has agreed to intervene in the case against Fluor, but the government will not intervene in cases against Secure Horizons LLC and Congressional Strategies LLC.  Since Ms. Rambo filed the lawsuit under the False Claims Act, she can share a percentage of the recovery with the United States government.  


Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice, stated: “The taxpayer money Congress allocated for this program was for training federal emergency response personnel and first responders, not to lobby Congress and other for more funding.  When public funds are misused, as alleged in this case, the Justice Department will work to restore them to the Treasury.”


The Civil Division of the Justice Department and the U.S. Attorney’s Office for the Eastern District of Washington are handling the case and receiving assistance from the Department of Energy Office of Inspector General.  


Source: U.S. Department of Justice
 

Contractor Explained

Contractor Explained

What is a Contractor?
A contractor is an individual or company who is responsible for the day-to-day operations and oversight of a construction site. In addition to these functions a contractor will also manage the transactions involved in the site, primarily trades and deals with vendors.
A contractor is also responsible for keeping touch with the general contractor and the involved parties involved throughout the course of the project. 

Price Evaluation Process:
Before starting a construction project, a contractor must visit and assess the construction site. Upon evaluating the piece of property, the contractor will formulate a price, referred to as an estimate. The contractors will then evaluate the cost of all materials, equipment, as well as the cost of labor. After analyzing the expected cost of the project, the contractor will provide the owner of the building with an approximate price for the construction process. 
Following the delivery of the expected price for the project, the contractor will draw up contracts. These contracts will elaborate on the budget and the conditions revolving around the plans and specifications of the project. The contractor will utilize a design professional, such as an architect, to better evaluate the necessities of the project. That being said, in the majority of construction sites, the contractor will also act as the project engineer or the project manager. 

What is a Contractor Responsible for?
A contractor is responsible for providing the construction companies and the individual workers with all material, including labor, equipment and those services necessary for the construction of the project. In order to accomplish these tasks, the contractor will incorporate specialized subcontractors to perform specialized tasks or portions of the construction process. 
The responsibilities of the contractor will vary depending on the size and complexity of the construction project. In general; however, a contractor will be responsible for providing or accomplishing the following tasks: filing for building permits, securing the property, managing the workers on site, providing temporary materials and utilities on site, providing engineering functions and surveying for the site, disposing of wastes left over by the construction process, monitoring the schedules of workers, balancing the costs of the project and maintain accurate records regarding the finances and the construction process as a whole.


Example of a Contractor’s work:
An owner of a building or a real estate developer will develop a program based on their needs and subsequently choose a site. An architect will then assemble a design team of engineers and other experts to design the building and pinpoint specifications needed for construction. During this phase, the contractor will frequently participate in the design efforts by providing services where they will aid in providing price estimations and information revolving around scheduling. 
The owner, contractor and architect will then work closely together to meet the deadline and budget of the project. The contractor will work with subcontractors to ensure that all quality standards have been met, in addition to the budget and timeline.  

Make Sure You Know the Basic Principles of Law of Contract

Make Sure You Know the Basic Principles of Law of Contract

What is the Law of Contract?
As is common with the majority of legal principles, the basic fundamentals of contract law will vary by jurisdictions throughout the United States. In all jurisdictions; however, a contract must require an offer, a subsequent acceptance or agreement to the stipulations within the contract, and consideration.
These characteristics are in essence, the foundation for a document to be regarded as a legally binding and valid contract.
 
Basic Principles of the Law of Contract:
The law of contract states that the first step required to form a valid contract is that an offer must be formally made by one of the parties to another. A common example to elucidate upon this principle is found in the sale of property; the purchaser, in this example, must make an offer to purchase the underlying property. This offer may include simplistic or complex terms, but it must be concrete and affirmed through written documentation.
Following the offer, the contract, as stated by the law of contract, must be accepted by the offered party. Using the sale of property as an example, the seller must affirmatively accept the offer; the original offer may be accepted in a written or spoken form.
If the offered party proposes a counteroffer, an acceptance is not realized. When a court determines whether or not an offer and acceptance was realized, the judicial body using the law of contract will look for a formal meeting or a concurrence of wills to decide if the requirements latent in the offer and acceptance statutes of the law of contract had been satisfied.
Lastly, the basic principles of the law of contract will require consideration to be given for the contract to maintain a legal or valid status. Consideration simply means that something of value was exchanged between the agreeing parties. In most instances, the consideration takes the form of money or an asset that holds considerable value.
In some scenarios; however, consideration can take the form of refraining from performing a function or doing something that the party is otherwise entitled to initiate. Regardless of the form, the consideration given must be sufficient, but does not need to be adequate to validate the stipulations latent in the contract.
 
Court Evaluations of a Contractual Agreement:
 
In addition to the basic principles of the law of contract, a court system, when evaluating the validity of a contractual agreement will evaluate the capacity of the party’s when the agreement was reached. The capacity to enter into a contract may be affected by numerous factors; for instance, minors do not possess the legal capacity to enter into a contract. In addition, a person’s mental state may also be considered when evaluating whether the person had the capacity or ability to enter into a valid contract.
Numerous courts will look to the legality of a contract when determining its validity. If a contract requires an individual to do something illegal, it will be deemed void on its face.
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