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.

Understand Your Rights As An Employee

What are Employee Rights?

Employee rights are the personal freedoms and privileges given to individuals who work in the United States, as well as other developed nations. Employee rights are affirmed through employment laws; in a general sense, employee rights are awarded to working individuals to protect their interests and safety in the workplace.

The most basic and fundamental employee rights will offer the working individual the right to time off work, to contribute work without harassment, and the right to receive minimum as well as overtime pay. Those individuals who work and who do not receive such employee rights possess the ability to file lawsuits against their respective employers. If found guilty of violating these basic employee rights, the underlying employer will be forced to provide the respective employee with monetary compensation and punitive damages.

Employee rights take the form of both state and federal laws; each individual state posts its own minimum wage scale that must abide by the federal scale enacted by the United States government. Employee rights regarding overtime, although up to the discretion of the particular employer, must also meet the federal guidelines instituted by the United States government.

All employees, except for those exempt such as salaried supervisors, are entitled to compensation for hours worked beyond the hours required in the individual’s particular employment contract.

Minimum Wage:

Another fundamental employee right is the right to earn a minimum wage. It is illegal, based on employee rights and coordinating employment laws, to pay individuals below the federal and local minimum wage level. No state may pay employers below the national minimum wage right, although the potential for workers in the service industry to collect tips, does enable an employer to pay a wage lower than the national level.

Time off Work:

Employee rights mandate that all employers allow their respective employees to take time off from work. The reasons for requesting time off can include the need for a vacation, family emergencies or medical leave. Regardless of the reason, an employer must satisfy this basic employee right; the amount of time off will vary based on company and the stipulations which elucidate on time off will be documented in the employment contract.

Workplace Rights:

All employees possess the right to enjoy a workplace that is free from harassment. Basic employee rights will protect workers against sexual harassment or harassment fueled by age, race or gender discrimination. If a worker is being harassed, the individual has the right to file claims with an administrative body to initiate the filing of a civil suit.

Oral Contract Vs Implied Contract?

According to contract law, an oral contract is not considered an implied contract. An oral contract is an agreement that is agreed upon only by spoken communication. Although an oral contract originates from the mouth, it is common for a written contract to be created after the oral contract is stated.

In contract law, oral contracts are considered just as valid as written contracts. Some jurisdictions require that a contract be written up after an oral contract is made. Within this type of circumstance, the document must state that the original agreement was created verbally.

An implied contract is an agreement that is not generally agreed upon. Instead, it is something that is more assumed to be followed. An example of this type of contract would be an employment contract where the employer does not specify hours but does specify the total amount of time required to be worked.

Promissory Estoppel Overview

What is Promissory Estoppel?

In a general sense, Promissory Estoppel is a legal doctrine used in American law, which allows a party to recover on a promise, even if the promise was made without a formal consideration. In essence, a Promissory Estoppel prevents an individual from arguing that an underlying promise offered should not be upheld.

In addition, a Promissory Estoppel requires that a reliance on the promise was deemed reasonable and that the individual attempting to enforce the promise actually relied on the promise to his or her detriment. As is common with numerous forms of legality issues, the precise legal requirements needed to enact Promissory Estoppel may vary between jurisdictions within the United States.

A common example of Promissory Estoppel is where an employer offers an oral promise to pay an employee a monthly amount for the remainder of the individual’s retirement. If the employee relies on the promise and subsequently retires, the employer will likely be estopped, based on the principle of a promissory estoppel, from reneging on this promise to offer the monthly retirement payment.

Laws surrounding a Promissory Estoppel:

In a typical case of a promise or a contract, the law requires that a party receive consideration for the agreement. Consideration refers to a valuable asset that is exchanged between the two parties and the time of the agreement or the promise was made. Consideration can take the form of an asset, the exchange of monies, or the promise to refrain from doing something. Regardless of the form of consideration required in a contract, a consideration is needed in order to make an agreement or promise legally enforceable.

That being said, because the court system aims to achieve fairness, a legal forum will apply the doctrine of promissory estoppel in situations where a consideration is made. Even if an enforceable contract is not generated, the law may enforce the promise if a reasonable reliance and detriment are proven.

Differences between the Promissory Estoppel Doctrine and the Doctrine of Estoppel:

A promissory estoppel relies on a promise, while the doctrine of estoppel relies on a statement of fact. As a result of this foundational difference, the two doctrines complicate contractual agreements or the statement of a promise. Even if an agreement is not based on a formal consideration and even if promissory estoppel is not enforceable, because the situation did not include a promise, a court system can still enforce the “agreement” as a means to promote fairness.

This somewhat loose interpretation of promissory estoppel enables the court to impose obligations on the parties through the delivery of a quasi-contract—a doctrine that implied in law.

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

Act for the Prevention of Frauds

The Act for the Prevention of
Frauds and Perjuries was an English law established in 1677 in order to prevent
perjuries in regards to legal contracts and agreements. It is from the Act for
the Prevention of Frauds and Perjuries that the Statute of Frauds was taken.

The Statute of Frauds is a
legal policy that requires certain contracts to be created in written form.
Unlike many agreements, these specified contracts are not legally binding
unless a written contract is created to regulate and govern these agreements.

Many agreements are covered
under the Statute of Frauds, including contracts related to marriages and real
estate transactions. This policy, which was initially detailed in the Act for
the Prevention of Frauds and Perjuries, continues to be used in many locations
today. In the United States, certain agreements cannot be considered legally
binding unless they are accompanied by a written 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.

All You Need to Know About Sustainable Construction

What is Sustainable Construction?

Sustainable construction refers to the process of constructing a structure that is environmentally sound and resource-efficient throughout the building’s life. Sustainable construction incorporates a recyclable aspect throughout the entirety of the building’s lifecycle, meaning the project will be deemed efficient (in terms of resources used and the impact it poses on the environment) from design to construction and subsequent operation, maintenance, renovation and finally its demolition.

The introduction of innovations and new technologies have enables the construction of new buildings to meet environmental and resource standards. These new technologies, which are consistently being developed, complement current construction efforts to create greener structures. The common objective of sustainable construction is to reduce the overall impact and coordinating negative externalities that a construction project poses on human health and the natural environment.

How does Sustainable Construction work?

To accomplish the aforementioned goals, a sustainable construction project will efficiently use its available resources and combine this practice with recyclable or innovative technologies. A sustainable construction project will efficiently use energy, water and other natural resources to build the structure. In addition, a sustainable construction project will protect occupant health and improve employee productivity through the issuance of a highly-regulated and organized protocol. Lastly, a sustainable construction project will reduce by products, through the reduction of waste, pollution and environmental degradation.

Sustainable Construction and Energy Efficiency:

A green building will typically utilize energy in a highly efficient manner. To increase the efficiency of energy, the construction team may use high-efficiency windows and innovative insulation systems in the structure’s walls, floors and ceilings.

A sustainable construction project may also incorporate other innovative technologies, such as a passive solar building design. This strategy will implement orient windows and walls to shade the structure during the summer while maximizing light in the winter months.

A sustainable construction project will also implement renewable energy sources throughout the construction process. Solar power, hydro power, wind power or biomass can all reduce the environmental impact of the building.

Sustainable Construction and Water Efficiency:

Protecting water quality and reducing water consumption are fundamental objectives during the sustainable construction process. The conservation and protection of water throughout a building’s life cycle may be accomplished by designing dual plumbing systems. These systems will efficiently recycle water when a toilet flushes. In addition, water may be conserved during the lifecycle, by installing low-flush toilets or low-flow shower heads.

Point of use water treatment and heating systems also improve both the water quality and the efficiency of energy by reducing the amount of total water in circulation.

Sustainable Construction and Waste Reduction:

A sustainable construction project will seek to reduce waste or byproducts; the materials and water used during the construction of a sustainable structure will be preserved as much as possible. During the building phase, a sustainable construction project will limit the amount of material that is transferred to land-fills. An efficiently-designed building will also help reduce the amount of waste generated by the occupants by providing various on-site solutions, such as compost bins.

Quick and Easy Contract Law Cases

Contract law cases can be classified under the general law of obligations. The general category of the Law of Obligations includes Torts Law, Unjust Enrichment Law, and Restitution Law, besides Contracts Law.

One of the most famous contract law cases is the case of Carlill v. Carbolic Smoke Ball Company. Although this case of contracts law is included in English contract law cases, the relevant principles of contracts law in the English system were adapted to the American courts.

Carlill v. Carbolic Smoke Ball Company is one of the most famous contract law cases since it involved a manufacturer who offered a flu remedy called a “carbolic smoke ball.” The makers of the smoke ball, the Carbolic Smoke Ball Company, advertised in a newspaper that buyers who developed the flu despite using the smoke ball properly would be given 100 Pounds as a refund.

The Company claimed that the advertisement was not a serious offer, but the judges in the case ruled that because there was a statement from the company that they had deposited money in an account so that they would be able to make the payments if there were any claims, a reasonable person had cause to believe that there was a sincere offer, thus meeting the requirement that there be an offer and acceptance to form a contract.

Your Guide to Understanding Contract Management Software

What is Contract Management?

Contract management, is the management of contracts that are created between customers, partners, vendors or employees. The field of contract management includes negotiating the terms and conditions present in these contractual agreements, while subsequently ensuring that stipulations within the contract adhere to compliance issues designated by the underlying company or industry.

In addition, contract management entails the documenting and agreeing on all changes that may come to light during the implementation and execution of such contractual agreements.

Contract management can be best summarized as the formal process of efficiently managing the creation of a contract, along with expediting the execution and required analysis of the contract. The systematic approach of contract management is required to maximize the financial and operational capabilities and performance of the underlying parties. In addition, contract management is undertaken to mitigate the risk associated with a contractual agreement.

Contract management deals with contractual agreements that are made in a commercial setting; common forms of commercial contracts will include employment letters, purchase orders, sales invoices and utility contracts.

The more complicated forms of commercial contracts will include contractual agreements regarding constructions projects, the exchange of goods or services that are regulated by a government authority or require the delivery of technical specifications, intellectual property agreements and issues revolving around international trade.

Contract Management Software:

The majority of large corporations in the United States, actively manage and maintain nearly 50,000 contracts at any given time. The majority of these contracts, are managed in a tradition or manual sense; however, approximately one quarter of such companies have recently implemented a form of contract management software to expedite the management of such contracts.

Contract management software is an automate program to help streamline the creation and negotiation of a business contract; contract management software achieves such functions through compliance and renewal and through exhaustive monitoring of the underlying contracts. Contract management software requires the programs to maintain a corporate contract, to improve a respect company’s access and visibility in regards to the control of contracts.

The majority of contract management software will also enable the corporation to create and observe warehouse standard contracts and business terms and conditions for such contracts through various templates. Other forms of business contract management software will utilize a Service Lifecycle management program, which will bundle contract management with all other forms of management in relation to service-based operations.

This function enables the contract management software to improve the company’s customer retention; through these various functions, the average piece of contract management software will allow companies to better achieve savings during procurement negotiations and procurement spending. In addition, contract management software, will enable the using corporation to improve sales effectiveness and increase compliance by allowing contracts to ultimately drive day-to-day operations.

Contract Law

Important Facts About Breach of Contract

Contract vs. Agreement

Contract Law Defined

Understand Your Rights As An Employee

Oral Contract Vs Implied Contract?

Promissory Estoppel Overview

Government Files Lawsuit against Fluor Companies

Act for the Prevention of Frauds

The Secret of Offer and Acceptance

All You Need to Know About Sustainable Construction

Quick and Easy Contract Law Cases

Your Guide to Understanding Contract Management Software

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