Home Contract Law

Contract Law

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
 

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.

Important Facts About Breach of Contract

Important Facts About Breach of Contract

What is a Breach of Contract?
A breach of contract occurs when a party, who agreed to formulate a contractual obligation with another party, does not carry out the intended function of the contract. As a result, a breach of contract is a legal cause of action where the binding agreement latent in the contract, is not honored by one or more of the parties to the contract. 
A breach of contract can result in an individual not carrying-out a specific performance that was expected by the contract or by interfering with the other party’s ability to perform the task. 
If a party, who agreed to formulate a contract with another party, does not fulfill his or her contractual promise or has given information to the other party that he or she will not perform his expected duty as labeled in the contract, the party is said to have performed a breach of contract. In addition, if the individual is unable to perform the obligations latent in the contract for whatever reason, a breach of contract is present. 

Types of Breaches:
Minor Breach of Contract: A minor breach of contract constitutes a party’s inability to perform the full task expected by the contract; a minor breach of contract is referred to as an immaterial or partial breach of contract. In these instances, the non-breaching party cannot sue for specific performance, and can only seek legal action for actual damages sustained. 
Material Breach of Contract: A material breach of contract is realized through any failure to perform, which ultimately permits the other party to the contract to collect damages because of the breach or compel performance. 
Fundamental Breach of Contract: A fundamental breach of contract is a breach that permits the aggrieved party to terminate performance of the formulated contract. In these scenarios, the non-breaching party is entitled to sue the breaching party for damages sustained. 
Anticipatory Breach of Contract: A breach of contract through anticipatory repudiation is an unequivocal indication that the party refuses to undertake the project or deliver performance as stipulated in the contract. Included in this type of breach, is a situation where a future non-performance is inevitable. This type of breach of contract allows the non-breaching party the option to treat the breach as immediate, which ultimately allows them to terminate the contract and sue for damages, without waiting for the actual breach to take place. 

Remedies of a Breach of Contract:

In most instances, the judicial remedy for a breach of contract is the delivery of monetary compensation for damages incurred. If the failure to perform or satisfy the contractual obligation cannot be redressed through monetary compensation, the underlying court may enter an equity decree, which will award an injunction or the delivery of a specific performance. 
The aggrieved person possesses the obligation to mitigate damages through reasonable means. In the United States, under contract law, punitive damages are typically not awarded for a breach of contract but may be awarded for other causes of action in a lawsuit. 

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 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.
 

Read This Before Filing A Petition of Revocation

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.

Verbal Contract V. Written Contract

Verbal Contract V. Written Contract

Contract law in the legal context of the United States generally allows for a contract which is called into being by the exchange of verbal expressions to be as valid as one which is set forth in writing. This general provision for a verbal contract may, however, be modified in certain jurisdictions by specific contract law requirements for a contract to be set down in specific circumstances and toward specific ends. Moreover, contract law for an area may or may not provide for the difficulties which can arise in carrying out a verbal contract. 
The lack of a written contract can present problems in terms of the lack of proof as to what was agreed to under contract law. As such, judges administering contract law may be forced to apply a standard of fairness in order to resolve the contract dispute. In this way, a verbal contract, while valid, may not be effective.

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 ā€œpacta sunt servandaā€, 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.

All You Need to Know About Sustainable Construction

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. 

Deed Poll

Deed Poll

A deed poll is a type of legal document that only involves a single person or party, and which states a particular intention that such a person is bound to by the document itself. A deed poll itself is not a contract due to the fact that only one party is affected by such a legal document and it states only an intention, rather than a guarantee or promise. This kind of document is oftentimes referred to as a deed poll name change because it is very commonly used in order to enact a name change for an individual. 
Change name by deed poll is most commonly used in Europe, particularly in England, Ireland, and Northern Ireland. Other nations such as Hong Kong and New Zealand also use the deed poll name change.
Typically speaking, to change name by deed poll will require that a person complete a form, which must be signed by a witness. The form is then filed with the appropriate court. In many jurisdictions, deed poll name change may be considered as a legal name change, though change name by deed poll may not necessarily change a person’s name on the birth certificate. 
Therefore, in the case that a passport is to be obtained, for instance, both the birth certificate and the change name by deed poll document will need to be furnished in order to complete the passport requirements.

Attorneys, Get Listed

X