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Contract Law

Understand Your Rights As An Employee

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. 

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.

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.

 

Contract Law Defined

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.

Easy Guide to Contract Law

Easy Guide to Contract Law

What is a Contract Law?
 
Contract Law is the legal field that undertakes the regulation, establishment, and oversight of legislation pertinent to contracts; contracts are defined as legally binding agreements whose expressed legality upon construction is required in order to substantiate the authenticity of the contract itself. A contract will typically include at least 2 entities who must agree to participate within the expressed stipulations and terms illustrated within the text of the contract. A legal contract will typically include 4 primary components:
An ‘Offer’ is the initial provision of the terms expressed within the contract
‘Acceptance’ is the agreement enacted by both parties with regard to participate in the contract
A ‘Counteroffer’ is an acknowledgement of the terms expressed within the contract – a counteroffer is not synonymous with the endorsement of a contact
The ‘Consideration’ is the identification of valued items that may be used as collateral in the event of a breached – or broken – contract
What is an Illegal Contract?
 
The precepts within Contract Law define an illegal contract as a contractual agreement deemed to be absent of the required satisfaction of legal statutes necessary for the contract to be viewed as legal. Within contract law, contracts may be deemed as illegal due for the following reasons:
The inclusion of a minor as a party to the endorsement or creation of a contract is considered to be illegal; as a result of their legal rights and liberties – in accordance with their respective age(s) – a minor is considered to be ineligible to endorse a contract
Contract Law states that the forced endorsement of a contract, which is defined as the participation in either the construction or signing of a contract under duress or threats imposed renders the contract to be illegal
Contract Law states that contracts or agreements including the implementation or involvement of products, services, or activities considered to be illegal within the jurisdiction in which the contract was constructed or endorsed is rendered as an illegal contract
Contract vs. Agreement
 
Although the definitions of the two terms tend to become blurred both through misuse, as well as varying terminology, the precepts of contract law express that a contract and an agreement are not synonymous. While a contract may include a variety of agreements within its content, the primary difference between a contract and an agreement lies in the fact that the failure of one – or both parties – to adhere to the terms expressed within an agreement will typically be unable to result in legal action or punitive recourse. Conversely, the violation of the terms of a contract – upon that substantiation of that contract’s legality – may be subject to legal action or punitive recourse.
Contract Law Trials and Hearings
With regard to the legal review of contracts, Contract Law will oftentimes integrate the statutes expressed within tort law; a tort is derived from the French word meaning ‘wrong’ with regard to a wrong suffered by or upon an individual in conjunction to the involvement of another individual or entity:
Upon review of a broken – or breached – contract, the precepts of contract Law implements the legal procedure in which individual responsibility and action is classified and weighed without the mention or facilitation of a binding and legal contract
The analysis of any or all respective liability and participation is evaluated through litigation, case review, and witness testimony with regard to a broken or breached contract

The Secret of Offer and Acceptance

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.

What You Must Know About Withholding Employee Wages

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.

What Are Contracts

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.
 

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.
 

Where Can I Find Sample Contract Forms?

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.


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