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.

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.

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.

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.

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.

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.

Find Out What Meeting of the Minds Means

One of the essential tenets of contract law is that in order for a legal and valid contract to be formed in the eyes of the courts, there must be a “meeting of the minds” between the parties forming the contract. The parties to the contract can be individuals, or a legal entity can be entered into a contract by an official in a position of power in the legal entity.

However, establishing the existence of a meeting of the minds is very difficult for the courts to determine. If there is any dispute about the terms of a contract before a meeting of the minds develops, the courts will show a preference to interpret the terms of the contract in a way which does the least harm or damage to all the parties involved.

A meeting of the minds may also be found to not exist if the contract fails a “reasonable man” test. The reasonable man test is that a normal person with the range of knowledge that a person of a similar background to the person disputing some or all of the terms of the contract, would have reasonably interpreted the contract in a particular manner. The reasonable man test can be influenced by the specific individuals who are involved in the contract at issue.

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.

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.

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

All You Need to Know About Sustainable Construction

What are Sample Contracts

Simple Guide to Verbal Contracts

Using A Contract Termination Letter

Make Sure You Know the Basic Principles of Law of Contract

Oral Contract Vs Implied Contract?

Contract Law Defined

Read This Before Filing A Petition of Revocation

Find Out What Meeting of the Minds Means

Quick and Easy Contract Law Cases

All You Need to Know About Sustainable Construction

Act for the Prevention of Frauds

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

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