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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.

Oral Contract Vs Implied Contract?

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. 

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.
 

Read This Before Entering Into A Quasi Contract

Read This Before Entering Into A Quasi Contract

What is a Quasi Contract?
A quasi-contract is a fictional contract that was created by courts to promote equitable treatment. As a result of this definition, a quasi-contract is not an actual, legally-binding document, but instead a legal substitute for a contract that is formed to impose equity between two distinct parties. 
The basic concept of a quasi-contract is that a contractual agreement should have been formed in situations where such an agreement was not realized. The quasi-contract is thus used when a court system feels as though it is appropriate to create an obligation to avoid an injustice and to promote equality between two parties. 
In most cases, the actual existence of a real contract is required for a defendant to be held liable for services rendered; however, in many jurisdictions throughout the United States, under certain circumstances, a plaintiff may be entitled to seek restitution under a quasi-contract.
Basic Elements of a Quasi Contract:
The basic elements of a quasi-contract require three fundamental principles. The first element is that the plaintiff furnished valuable goods or required specific services to be rendered with a reasonable expectation of being compensated if the defendant breached or failed to meet these expectations. Secondly, the defendant must knowingly have accepted the aforementioned goods and obtained a direct benefit through this acceptance. 
And lastly, the defendant must receive benefits by the goods or services that are regarded as unfair in situations where the plaintiff received no compensation.
In a standard, legally-binding contract, both parties agree to the stipulations of the deal and the surrounding subject matter, to affirm the agreement and to make the contract binding, the parties enter into an oral or written agreement prior to exchange of goods or services. 
In a quasi-contract; however, one of the parties does not intend to enter the contract. Even though mutual assent is not achieved, the court can decide to create a contract to promote fairness between the two parties. 
In most instances, a quasi-contract is created when disputes over payments of goods or services arise between two parties. When these situations arise, the remedy for a quasi-contract is typically limited to whatever is necessary to prevent the presence of unjust enrichment obtained by one of the parties. 
This typically means, in regards to the creation of a quasi-contract, that damages are restricted to the cost of the plaintiff’s materials and labor. In these situations, profits are excluded on the grounds that it is unfair for a party who did not want to enter a contract to pay the profits to the other party. 

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
 

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.

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.
 

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.

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.”

Quick Blurb on Contract Laws

Quick Blurb on Contract Laws

Contract law is the legal
specialty that addresses the creation and execution of contracts. The rules and
regulations established in contract law indicate that a contract is a legally
binding document. Therefore, once a contract is signed by all participating
parties, these individuals are legally obligated to adhere to the conditions
outlined in the contract.

Following the authorization of
the contract, a participating party cannot choose to alter the contract. The
terms and conditions of the contract can only be altered or modified if all
parties agree to the changes. In the event that this occurs, a new contract
will need to be created. 

The new contract will detail any modifications made to
the original contract. However, if one participating party opposed the alteration
of the original contract, then the contract cannot be modified. The party who
wanted to alter the contract conditions will be required to adhere to the terms
of the original contract.

 

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