What Are Contracts

What is a contract?

A contract agreement is a legally binding agreement that is reached between two parties under which the two parties to the contract agree to assume an obligation to each other and provide methods of remediation through the courts in the event there is a dispute about whether or not each party upheld their obligation.

Contracts law cases

Contracts law is one of the major sections of common law. Some of the most prominent contract law cases have been developed over the past several hundred years. The most prominent and influential of these contract law cases have been compiled to create the Restatement of Contracts.

Meeting of the minds

A meeting of the minds is one of the essential elements of forming a valid contract. Meeting of the minds means that both parties to the contract have agreed to the terms of the contract. It can be difficult for the courts to determine if a meeting of the minds has been conclusively established.

Deed poll

A deed poll is a legal document that binds a single party to take an action. It is different from a contract in that while a contract expresses a promise, a deed poll only expresses an intention to act. A deed of poll is commonly used in England, Wales, the Republic of Ireland, Northern Ireland, Hong Kong, and Singapore.

Contract templates

Contract templates can be used to form a general contract. A contract template may also be used to ensure that the terms of the contract are equitable to all parties involved.

Offer and acceptance

The underlying concept behind contract law is pacta sunt servanda. Pacta sunt servanda is a Latin phrase which is translated as agreements are to be kept. However, this only applies to legally valid contracts. One of the main methods of determining when a contract is valid is by determining if offer and acceptance has taken place. In the eyes of the law, the offer and acceptance is only valid if there is not a change to the offer and acceptance is unequivocal.

Consideration

Consideration is the item of value that is exchanged in a contract. Contract law is not concerned about whether or not the consideration being exchanged is of equal value. All that matters is that the consideration cannot be inconsequential.

Contract termination

A contract termination letter template can be an important resource for a company since it can help to make sure that the contract termination letter is legally valid and does not violate any laws when the contract termination letter is served. The contract termination letter should provide the reason the contract is being terminated, as well as the legal justification for the contract termination.

Boilerplate contract

A boilerplate contract, adhesion contract, or standard form contract are all synonymous terms for a contract in which the terms of the contract are drafted ahead of time. Part of the controversy behind a boilerplate contract or adhesion contract is that it may not be possible to access the terms of the contract before signing the contract, since it may be on a “take it or leave it” basis.

Sample contracts

Sample contract forms can help individuals form a boilerplate contract, although standard contracts may also be formed from contract forms for the sale of goods, to create employment contracts, or to create a standard contract that can be used with minimal customization and involvement of lawyers.

Uniform Commercial Code

The Uniform Commercial Code, abbreviated as the UCC, is a legal document that is meant to serve as a guideline for states to align with their contract laws in order to facilitate commerce. In one form or another the Uniform Commercial Code has been adopted in all fifty states, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands. However, Louisiana has not adopted Article 2 of the UCC.

Contract software

Contract software to create free contract templates can be found widely online. These free contract templates can be used for personal or commercial business. Contract software can be distinct products or may be add-ons to existing software.

Contract vs. agreement

While a contract forms a binding relationship between two parties, an agreement involves a relationship that cannot be enforced by the courts. Contracts outline the obligations that are being assumed, although contracts outline the remedies if these obligations are not met.

Restatement of Contracts

The Restatement of Contracts is a widely respected legal treatise. The Restatement of Contracts is compiled by the American Law Institute.

Privity of contract

Privity of contract is the concept that only the two parties that form business contracts can sue to collect benefits from the violation of a contract.

The Secret of Offer and Acceptance

The underlying philosophical approach to contract law is pacta
sunt servanda. Pacta sunt servanda is a Latin phrase that
can be literally translated as “Pacts must be kept,” but is more commonly and
colloquially translated to mean “agreements are to be kept.” This phrase is the
essential theory behind contract law. However, pacta sunt servanda only
applies if the contract that is formed is a legally valid one.

One of the most essential
aspects used to determine if a contract is valid or not is if there is a
legally recognized offer and acceptance. The focus on offer and acceptance is
the traditional approach to analyzing whether an agreement is present between
the two parties who are in a contract dispute.

When measuring whether there is
a sufficient agreement between the two parties, there must be an offer and
acceptance. The offer is the terms that are presented to the “offeree” by the
“offeror”. In order for a contract to be formed, the offer must be accepted
unconditionally.

If the initial “offeree” makes any changes to the terms
presented to them by the offeror, then there cannot be offer and acceptance at
that point, for the individuals have immediately swapped position. This new
offer, and acceptance of the new terms, may result in agreement, however. The
difference is largely technical, and only becomes an issue if there is a contractual
dispute between the parties.

Read This Before Filing A Petition of Revocation

A petition of revocation can be filed by any citizen of the United States in the event that they feel that they or others have suffered as a result of any granted permission to an entity to act. There exists a wide variety of possibilities to file a petition of revocation, which range from Federal and governmental levels to civic and commercial levels. Due to the fact that expressed permission was granted, a petition of revocation of that expressed permission must be filed in order to eradicate the expressed permission in question.

For instance, in the event that a liquor store has been suspected of selling alcohol to minors, the police, local government, or concerned citizen(s) can choose to file a petition for the revocation of that particular establishment’s license to sell alcohol.

A petition of revocation can both be filed as a suit in and of itself, or it can be added onto to a preexisting sentence. In this example, the liquor store could be fined for its misconduct, or it could be both fined in tandem with the revocation of its license.

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

Contract Law Defined

Contract law is defined as the body of law that governs oral and written contracts. Included in contract law are topics on the nature of contracts, limitation of actions, breach of contract, termination of contract, and many more. Put simply, contract law deals with the legal issues surrounding the formation, duration, breaching, or termination of contracts.

For example, the Uniform Commercial Code is used in contract law to harmonize the law of sales and commercial interactions in the United States. This Code is used in almost every state and is considered the standard in most states regarding laws on the sale of goods. The Uniform Commercial Code is a long-standing act in contract law, a collaboration between the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute.

Breach of Contract

One of the most prevalent subjects in contract law is the idea of a breach of contract. A breach of contract is a legal concept characterized by one or more parties failing to honor the provisions stated in a contract. For example, if an employee signs a non-compete agreement with an employer and begins his or her own company after being fired, he or she can be sued for breaching the contract. Breaches of contract come in four main types:

Minor Breach

A minor breach of contract, also referred to as an immaterial breach, occurs when the non-breaching company is entitled only to compensatory damages.

Material Breach

Unlike a minor breach, a material breach allows the non-breaching party to collect damages and a court-obligated performance of conditions stated in the contract.

Fundamental Breach

A fundamental breach, also referred to as an anticipatory repudiation, is a breach of contract so tangible that it may allow the non-breaching party to terminate the contract. The party is then entitled to also sue for damages.

Anticipatory Breach

An anticipatory breach, also known as anticipatory repudiation, is when one party indicates that it will be unable to perform as the contract states, or that future non-performance is unavoidable. In this case, the anticipatory breach may be treated as an actual breach and the non-breaching party can then sue for damages.

Avoiding a breach of contract is important for many different reasons. For example, breaching a contract can lead to legal fees, a damaged business reputation, and damages. These damages may include:

Compensatory damages

Compensatory damages are damages used to compensate for losses in order to bring the non-breaching party back to the position before the breach.

Nominal damages

Nominal damages are awarded when a breach occurs with no measureable financial loss.

Punitive damages

Punitive damages are made to the non-breaching party whose payment can extend beyond the financial losses of the breach. They are meant to punish “wrongful acts” and are not specially aimed to remedy breaches of contract law.

Liquidated damages

Liquidated damages are identified by parties in the contract itself.

In addition to damages, a breach of contract may also bring specific performance or cancellation and restitution. In specific performance, the court orders that the breaching party perform duties written into the contract. In cancellation and restitution, the non-breaching party receives damages and is entitled to cancel the contract, voiding its terms.

Enforcing a Contract

To collect these remedies for breaches of contract, parties usually turn to small claims court. However, going to small claims court can cost a significant amount of time and money in court appearances and court fees. Many times, the parties will choose to go in another direction. In these cases, a dispute may be brought to mediation or arbitration.

Lawsuit

In most cases, the non-breaching party will sue for damages in small claims court. A lawsuit can result in a number of remedies for the breached contract, including damages, specific performance, and cancellation and restitution. A lawsuit can provide damages that will provide the non-breaching company with remedy for the breached contract, especially if it is measurable by the court.

Mediation

Mediation involves both parties working with a mediator to find ways to resolve the contract dispute. A mediator is responsible for finding a solution that works for both parties. Mediation allows the parties to minimize risk and control costs.

Arbitration

Arbitration is similar to mediation in that there is a third party reviewing the dispute. However, since arbitration is mandatory and legally binding (most of the time), many people will choose to undergo mediation instead of arbitration.

What You Need to Know About Contract Templates

Contract templates are used by many companies so that the company only has to have a contract drafted and examined by a lawyer or legal professional a single time. If the contract template is examined and declared to be legally valid and capable of standing up to close inspection or in a court of law, the contract template may then be used to create future contracts in as effective and efficient manner as possible in terms of both the time and money that is required to create a contract between different and additional groups.

However, since a contract template may make use of boilerplate language, there is a danger that if the contract templates do not make the contract template’s terms easily accessible and comprehensible, the contract template may not be considered valid and might result in a party that disputes a contract that develops from the contract template.

Contract templates are available for almost any conceivable contractual situation. A contract template may be produced by specific corporate contract software programs, or a contract template may also be used to create contracts from other templates in other, commonly available software programs and products.

Where Can I Find Sample Contract Forms?

Using sample contracts can help
individuals create contracts that will adhere to the basic tenets of contract
law while still being able to adapt to the particular needs of the contractual
situation in which they find themselves.

Contract forms may be created that
will provide blank spots in the sample contract into which a party will be able
to fill in their name or any other relevant information needed to transform the
sample contract form into a legally recognized valid contract.

Contract forms can exist for
the sale of goods, to form employment contracts, to create a relationship
between a landlord and tenant, to form a legally valid will or trust, to form
consent or release documents, and to create contracts for marriage or
cohabitation.

Other examples of sample
contracts include: event contracts; household services contracts; durable power
of attorney contracts; medical directives; other health and medical contract
forms; a variety of job contract forms, such as independent contractor agreements,
consultation contracts, project management contracts, or contracts for bidding
on a job; professional services contracts, such as a sample contract for child
care, for models, contract forms for a lien, a housing board contract, a contract
for maintenance, or model, painting, or photography sample contracts; contract
forms for real estate sales, rental contracts, general sales contracts, or
miscellaneous other forms of contracts.

What You Must Know About Withholding Employee Wages

Employers are
legally allowed to withhold employee wages when state, local, or Federal law
requires them to do so. The Federal law of the United States actually requires
employers to withhold wages to satisfy payroll tax requirements administered
through the Internal Revenue Service.

The payroll
tax requirements are used to fund Federal income tax, Medicare tax, and Social
Security tax. If an employer did not withhold employee wages, there would be no
way to fund such programs or levies. In addition, if local law requires it, the
employer is also required to withhold wages for state taxation.

As a result of the tax responsibilities, all
employers withhold a certain percentage of an employee’s wages. That being
said, employers are not allowed to withhold wages for any circumstance that is
not aligned with taxation or funding company programs or benefits. Withholding
wages without reason is illegal under United States employment law.

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.”

Quick Blurb on Contract Laws

Contract law is the legal
specialty that addresses the creation and execution of contracts. The rules and
regulations established in contract law indicate that a contract is a legally
binding document. Therefore, once a contract is signed by all participating
parties, these individuals are legally obligated to adhere to the conditions
outlined in the contract.

Following the authorization of
the contract, a participating party cannot choose to alter the contract. The
terms and conditions of the contract can only be altered or modified if all
parties agree to the changes. In the event that this occurs, a new contract
will need to be created.

The new contract will detail any modifications made to
the original contract. However, if one participating party opposed the alteration
of the original contract, then the contract cannot be modified. The party who
wanted to alter the contract conditions will be required to adhere to the terms
of the original contract.

Contract Law

Contract vs. Agreement

Make Sure You Know the Basic Principles of Law of Contract

What Are Contracts

The Secret of Offer and Acceptance

Read This Before Filing A Petition of Revocation

Government Files Lawsuit against Fluor Companies

Contract Law Defined

What You Need to Know About Contract Templates

Where Can I Find Sample Contract Forms?

What You Must Know About Withholding Employee Wages

Contract In Depth

Quick Blurb on Contract Laws

Easy Guide to Contract Law

All You Need to Know About Sustainable Construction

Contractor Explained

Find Out All You Need to Know About Construction Worker

Important Facts About Breach of Contract

Read This Before Entering Into A Quasi Contract

All You Need to Know About the Roman Law

Must Know Facts About Tenancy Agreement

Important Details on Service Level Agreement

Quick Outline of the Marital Settlement Agreement