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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.

What are Sample Contracts

What are Sample Contracts

Using sample contracts can help individuals to create contracts that will adhere to the basic tenets of contract law while still being able to adapt to the contract in question to adhere to and suit 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 affix 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 contract forms, project management contract, or a sample contract for bidding on a job; professional services contracts, such as a sample contract for child care, sample contracts for models, contract forms for a lien, a housing board contract, a sample 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 contract.
 

What Can A Contract Software Do For You

What Can A Contract Software Do For You

Contract software can provide
free contract templates for individuals to use when, in the course of their
business or personal dealings, they encounter the need to form contracts. In
addition to purchasing contract software for the express purpose of creating
contracts, in many cases companies are able to obtain free contract templates
online in order to accomplish their contract creation needs. The contract software
that is used may be customized for use by a company, or the contract software
may simply be used as they are originally obtained.

Free contract templates may be
used to create a standard form contract, which are also known as a boilerplate
contract or an adhesion contract. Whether paid or free, contract templates can
save an individual or enterprise substantial amounts of time, cost, and effort
that would otherwise be associated with the creation of a contract.

Contract software can be
drafted using free contract templates to help facilitate the use of contracts
and services. Contract software which an individual or enterprise obtains can
make use of free contract templates in order to allow the party that is
drafting the contract and then offering the contract to the other party, a
resource which can help them to make the contract more likely to stand up to
scrutiny in a court of law, as well as making sure that the free contract
templates which they use will provide for their particular needs.

All You Need to Know About Restatement of Contracts

All You Need to Know About Restatement of Contracts

The Restatement of Contracts is one of the most widely recognized and most frequently cited legal treatises that is part of jurisprudence in the United States of America. It is taught to most American law students during the first year of law school. It is the most-cited non-binding authority in common law in the United States.
The Restatement of Contracts is a peerless work in terms of overall influence and recognition among individuals on both the bar and the bench. The only possible rival for its recognition is the Restatement of Torts. The Second Edition of the Restatement of Contracts was begun in 1962, with the American Law Institute completing its compilation in 1979.
The general purpose of a restatement of the law is to allow judges and lawyers to have a general understanding of a set of treatises on legal subjects. The Restatement of Contracts allows individuals to have a general understanding of the principles of contract law. The Restatements of Contracts is one of the twenty three Restatements compiled by the American Law Institute.
The Restatement of Contracts is not legally binding, but it carries a great deal of weight and is highly persuasive because it represents the thoughts of prominent legal professors, practicing attorneys, and judges. The Restatement of Contracts is a reflective consensus reached by the American legal system and professionals, both of what the law is and, in rare cases, what the law should be.

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.

Important Requirements of Contract Law You Must Know

Important Requirements of Contract Law You Must Know

Contract law is the branch of law which addresses the rights and obligations which legally bind parties together. Contract law is legally enforced as a type of contract which is a certain agreement in which two or more parties agree on
specific terms. Contract law is based off of the Latin phrase “pacta sunt servanda”, which means agreements to be kept.
Contract law is regulated and enforced by the court system. Contract laws consist of the protection and regulation of: trusts, wills, loans, and work contracts. 
If a person breaks a contract it is known as a breach of contract and the person can be penalized for breaking a contract law. Generally, for a contract to be accepted in contract law, it must consist of certain requirements. Some requirements include:
Consent to contract;
Intention to create a legal relationship;
Lawfulness of purpose; and
Mutual agreement and acceptance of the contact.

Government Files Lawsuit against Fluor Companies

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
 

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.

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

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.
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