Facebook
Home Contract Law

Contract Law

Contract vs. Agreement

Contract vs. Agreement

The essential differences between a contract and an agreement are minor. In essence, a contract’s outline is more formal and more rigidly presented than the terms outlined in an agreement.
A contract is a legally binding agreement reached between two parties, the terms of which the courts have the authority and obligation to enforce. An agreement is a less formal creation of an obligation between the two parties.
An agreement usually lacks one or more of the essential elements that are required to be present in order to form a valid contract that will be considered legally enforceable by a court of law.
Contracts outline the terms of the relationship that should be formed between the two parties to the contract. An agreement also outlines the terms of the relationship between the two. However, the difference is that the contract’s outline is far more rigid than that of a contract.
The essential difference between an agreement and a contract is that typically an agreement will only modify a contract that is already in place but does not place an obligation on either one of the parties to provide consideration to the other party, which a contract requires. A contract can involve the exchange of promises between the parties to the contract, while an agreement may simply involve one party accepting the offer from another party.

Using A Contract Termination Letter

Using A Contract Termination Letter

A contract termination letter template may be used by a company in order to ensure that they terminate any contract in which they are currently in a method that will completely avoid further complications which can cause further disputes.
A contract termination letter template can be created to create an employment contract termination letter, a business contract termination letter, or a construction contract termination letter. These three contract termination letter types are the most common, which means that one of these three contract termination letter templates is most likely to be encountered or needed.
The essential elements to include in a contract termination letter are the names and specifications that can be used to identify the party to the contract who is receiving the contract termination letter. The contract termination letter should contain an opportunity to refer to the terms and conditions that were present in the original contract that empowers the party to terminate the contract.
If the contract termination letter involves a contract that requires the party breaking to contract to provide monetary compensation for breaking the contract, it is essential that the contract termination letter mentions how the payment will be provided.
A contract termination letter must include the code under which the individual gains the authorization to terminate the contract. This restriction primarily applies to a contract termination letter provided by a company to an employee. 
A contract termination letter should be completely professional.

Important Facts to Know When Refusing To Sign A Contract

Important Facts to Know When Refusing To Sign A Contract

Contact law encompasses a variety of types of contacts. In many cases, the rules and laws apply to all contracts. However, there are some specific laws which only apply to certain contracts.
For example, if an individual refuses to sign an updated contract, the repercussions would depend on the type of contract. In some cases, there is no recourse if individuals refuse to sign an updated contract, and the other party could in fact be charged with breach of contract if they refuse to honor the old contract.
For example, employers that distribute a new contract may request that all employees sign it. If an employee refuses to do so, they are still under the old contract. If that employee were terminated based on the new contract, the employer could be charged with breach of contract for the original contract.
 

Act for the Prevention of Frauds

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.
 

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.

What You Didn’t Know About Contract Management

What You Didn't Know About Contract Management

What is Contract Management? 
Contract management, also referred to as contract administration, 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 these stipulations 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. 


Common Areas of Contract Management:
Contract management, in the most simplistic of forms, will expedite the drawing and execution of a business contract. A business-standard contract model, as carried-out by numerous organizations throughout the United States of America will typically review and systematically inspect the following areas of business disciplines:
Baseline management
Commitment management
Authoring and negotiating the business contract
Creating a visible contract that is easily understood by both parties
Growth Contracts for sales-side contractual obligations
A contract management team will expedite the creation and delivery of numerous types of contracts, including purchasing contracts, partnership agreements, trade agreements, intellectual property agreements and sales contracts. 
A purchasing contract is a legally-binding agreement between a company (the buying party) and a supplier who promises to sell products and/or services that meet the terms and conditions within the contract. The company, in return, is obligated to acknowledge the transfer of goods and services and to pay the seller for the offering.
A sales contract is a legally-binding agreement between a company (the seller) and a customer; in this contractual agreement, the company agrees to sell products or services to the customer. In return, the customer is obligated to pay for the products or services purchased.
A partnership agreement may take the form of a contract which formally establishes the terms of a partnership formation between two legal entities. A partnership agreement, in regards to contract management, may also merely reflect the desire of the parties to act is if both are forming a partnership with common goals.  

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.

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.

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.”

All You Need to Know On How to Revise a Policy

All You Need to Know On How to Revise a Policy

A policy, by definition, is a set of principles or rules that are implemented for the purpose of obtaining or reaching a particular outcome or goal. Therefore, policies, in essence, exist in a variety of endless contexts.
Though a policy may be implemented for a particular time achieving the intended purpose, it may prove necessary to amend or revise a policy. Revising a policy can take various routes.
Revising a policy will usually be at the discretion of the entities or parties that implement the policy in the first place. In devising a policy, it is common that procedures in the changing or revising of the policy be included for future reference or circumstance. Each individual policy that exists and the actual actions or procedures involved in revising a policy will differ in accordance to the needs of the faction or party and the changes that are to take place.
123...5Page 1 of 5
Disclaimer: There is no confidential attorney-client relationship formed by using Laws.com website and information provided on this site is not legal advice. For legal advice, please contact your attorney. Attorneys listed on this website are not referred or endorsed by this website. By using Laws.com you agree to Laws.com Terms Of Use.
Facebook
©

Attorneys, Get Listed

Free Coupon
X