Home Contract Law Assistance

Contract Law Assistance

Become an Expert on Types of Contracts

Become an Expert on Types of Contracts

There are many different contracts that exist that support and protect business transactions. Contracts are defined as a written agreement between two more parties specifying the conditions of which the agreement is based on.The need for contracts are essential to protecting business transactions, since the conditions of the contract can be upheld in the court of law. All contracts outline the promises of each party along with specific remedies that would take place in the event that a contract is breached.
All contracts are usually comprised of seven elements agreement, consideration, capacity to contract, legal purpose, legality of form, as well as intention and consent to contract. The most traditional contract type is a contract under seal.
This type of contract is a enforceable stamped and sealed legal document, with the seal indicating legal consequences for any party in violation of contract. The seal of a contract is a old practice that made contract documents official. In previous times if a document was not represented by a sealed stamp it was not considered official by the statues of the law. However many jurisdictions today acknowledge contracts that are not as formal.
One type of informal contract acknowledged by the courts today are express contracts. Express contracts are either drawn orally or verbally during the time of transaction. Usually there is a distinctive written or verbal offer that accompanies the contract and terms of agreement. A more complicated contract is a contract that is implied, due to the number of variances that support the conditions of the contract.
The nature of a implied contract exists from the conditions that may arise as a result of a mutual agreement and the terms of these conditions are usually not clearly identified. However an implied contract is still justifiable in the court of law.  A contract that contains reciprocal promises are identified as bilateral contract types. In this type of contract one party promises a form of action in return for the promises described by another party. 
The opposite to this contract is known as a unilateral contract where only one party is making a promise. Under the conditions of this contract the promising party has the right to seek legal action if the other party fails to abide by specified conditions. 
Other contract types are either one sided or balanced contracts established my mutual parties. One type of one sided contract is known as the unconscionable contract, which usually benefits the person with a higher bargaining power. These contracts are usually unfair to all other parties who do not have any bargaining power. Unconscionable contracts usually targets people who are uneducated consumers unable to do comparative shopping. 
Although this type of contract is considered unfair, it is still permissible in the court of law.  Another one sided contract is known as a adhesion contract, often described as  the “take it or leave it” contract. This contract type is usually drafted by the party with a higher advantage leaving the weaker party the availability to only accept or decline. 
A more balanced contract is known as the aleatory contract where both parties assume risk for any possible occurrence. Some insurance policies are forms of aleatory contracts.
Different forms of contract types provide insurance for participating parties. It also holds parties accountable for their actions. All contracts take contributing parties to acknowledge the terms of agreement in order for a contract to be valid.

Legal Forms of Consideration

Legal Forms of Consideration

In common lawconsideration is anything of value that is held in connection to any existing contract. The substance of consideration can be anything  such as money, a promise of change, physical objects or a service. By law it is required for both parties to enter some form of consideration before binding a contract. The benefit of consideration is that it creates an agreeable exchange between two parties for any type of sale or service. As well as insurance of recover for losses due to detriment of promise. 
 
 
For a form of consideration to be deemed legal by the court system, that item offered as consideration must of some legal value. Any contract that does not contain some form of consideration is not legal in the court system and therefore cannot be enforced. People who enter contracts without consideration have no real guarantee against their business transactions especially in the event of detriment to promise. 
 
 
For instance if a person offers to sell their car and puts it in writing, but later on changes their mind. As a benefit there cannot be a substantial issue held in court because the agreement held no consideration. However if their was a actual transaction that took place as part of the agreement then a party is liable to find fault. Promissory estoppel is applied to cases like this.
 
 
For instance if the same owner wanted to sell their car and agrees to do so under the condition of the other party painting their whole house, if the owner backs out the party has the right to dispute as long as the agreed transaction already took place. The idea of promissory estoppel stops a person from arguing that their promise should be withheld. 
 
 
The idea of consideration within contracts have been in existence since the the implement of contract law. Contract law was created to safeguard the interest of parties primarily within commercial transactions. The whole purpose of contract law is to ensure that people are holding up their ends of bargains preventing promissory estoppel. 
 
 
All commercial transactions include some form of exchange, contract law protects the condition of those exchanges from detriment to promise. If a person enters a contract without consideration it will generally only benefit the party initiating the offer. If they happen to back out of a contract although they are in breach of contract nothing is jeopardized or lost. 
 
 
The party accepting the offer essentially looses nothing either, other than what was promised within a transaction. Promissory estoppel prevents parties from pursuing this matter in court without the element of consideration. 
 
 
Every contract formed should include consideration to legally bind the contract,this would benefit the interests of both parties. It is understood that a contract without consideration is technically not a contract at all. A party can exit a agreement from a contract with no consideration of detriment to promise,as long as there was no action towards completing the transaction. If a contract is breached with consideration the victimized party has the right to argue the conditions of the contract in court. 
 
 
They are essentially protecting their rights since they already expressed a vested interest towards the contract. Promissory estoppel prevents a party help responsible for not keeping their end of the bargain, from appealing court order. Elements of consideration have been applied to contract law for this reason and to benefit the interests for people who enter transactions.

Figure Out the Offer & Acceptance Formula

Figure Out the Offer & Acceptance Formula

Offer and Acceptance is a formula developed during the 19th Century, usually used to identify the moments before a contract, when all parties come to terms of agreement. This formula has been used to analyze the existing agreement between two parties. It is a common interpretation, that once the terms of offer and acceptance are clearly identified, a contract is drawn.
Terms of Offer and acceptance are included in a contract, with the offer being the indication of what a person is willing to put forward. The supporting party agrees to the terms of the offer which binds the agreement. The offer and acceptance can be documented in many ways via letter fax, email, newspaper or verbal communication. 
Courts system usually use objective test to determine the difference between parties that are bounded by terms of offer and acceptance, or if the conditions between a party are standard agreements. Typical offers include four major points being, delivery date, price, terms of payment, and a detail description of the item. The terms of offer and Acceptance also outline the conditions for terms of service. If a offer does not include any of the four elements then it is not considered justifiable by court law and is viewed as a simple advertisement. Offer and Acceptance is the most important part of a contract.
One distinct fact of offer and acceptance is, that it does not always have to be communicated in writing. There can be a oral terms of offer and agreement, as well as an implied contract which can take on two forms. There are contracts that are applied in fact, where one party agrees to terms before hand although the actual service would take place at a later time. 
One example of this is if a person orders a product and agrees to pay on delivery, however once the product is delivered they refuse to pay and this action puts them in breech of contract. Then there are the contracts that are applied in law also known as quasi contracts which gives the courts the right to remedy situations between parties. In essence this is not considered a actual  contract since the court has the right to determine who is liable even in the instance where no formal agreement was made. 
Offer and Acceptance agreements are essential anytime a contract is being drawn. It is the one thing that bind parties together as well as defining the conditions of service. There are a variety of contracts that exist and each legal contract contains terms of offers and acceptance.  

Understanding Contract Interpretation

Understanding Contract Interpretation

Under contract law, contract interpretation is defined as the way the court system reviews and interprets the written communication within contracts. This may be useful to streamline any problems that may arise after a contracts are drawn. Courts usually use contract interpretation to determine what the intent of the parties were when they entered a transaction. The language and terminology used within contracts is key to determining each parties intent at the time the contract was put into place.
A court system will take the ordinary meanings and intent of each party into account when interpreting a contract. In contract law, applying the ordinary meaning to the terms used within a contract can help the court system understand the terms of agreement. Using ordinary meanings within a contracts help the court system conclude if the language within contracts are clear and specific. 
The court uses ordinary meaning to interpret contracts unless the parties used the words formed in agreement in a specific of technical sense. If it is made aware that a contract is formed with a technical aspect the court will apply the terminology in a business or professional sense unless the contract defines otherwise. In addition to the language the court system will also use a parties actual intention to determine the aspect of the mutual agreement. 
When possible the related intent of the parties will be formed by what is written within a contract,especially if the court system finds the language and terminology within a contract clear. The intention of all parties included in a contract will dictate the courts resolution where there is a dispute.
There is a certain process to interpretation that identified by contract law. Most systems interpret contracts as a whole to include all parties. Under contract law courts also interpret the context of which contracts are made and the matters of which it relates to. Where there is more than one contract drawn for a particular matter, all contracts are reviewed together by the court as long as it is related to all parties. 
The court will only refer to a outside source when there is doubt in a contracts provision. There can be doubt with in a contract if the meaning and reference of the text can lead to two or more conclusions. Court systems usually rule out any doubt within a contract by settling the doubt with the appropriate party.
As defined by contract law, contract interpretation is useful for court systems to understand the tone communicated between parties when a contract is set into place. The implementation of ordinary terminology and analyzing a contracts context helps the court system understand the mode of which a contract was developed. 

An Overview to Contract Law Assistance

An Overview to Contract Law Assistance

Uniformed Commercial Code 

The uniformed commercial code (UCC) is part of a series of guidelines implemented under Contract Laws. Contract laws were created to insure the conditions of agreements between parties within a contract are upheld. Each state participates with the conditions of the UCC code in some form. The rise of businesses and the transactions within established businesses, are the primary focus of the UCC code. The elements of the UCC code ensures that parties who have encountered bad business transactions can recover from gains lost. Uniformed Commercial codes are implemented to this to streamline business transactions, making sure contracts drawn are clear and concise to the agreement of all parties. The implementation of contract laws prevent individuals from being taken advantaged of by others looking to make a deal without holding their end of the bargain. 


Types of Contracts

 
There are a variety of contract types that exist to include the wide range of business transactions that exist. While each contact usually based off the same elements, the conditions and responsibilities within a contract will vary. This variation is primary reason why different forms of contracts exist. All contracts are considered legit by court law. Whether contracts are issued in oral or written agreement does not change it validity. As long as parties contest to the agreement drawn within a contract they are responsible for keeping up their end of the deal. Some contracts however, are not beneficial to all participating members making them one sided. It is important that a individual pay particular attention to the terms of agreement before they comply. This way they can avoid being stuck in a bad deal. Safer contracts include risks and benefits that are equal for all parties. 

Recover Debts by Filing For Damages

Recover Debts by Filing For Damages

When parties come together in agreement to the terms and conditions specifies within a contract, it is the assumption between all parties that each individual will hold up their end of the bargain. When a party  is in violation for breach of contract, they have not complied to their end of the contract in some form. This ultimately results in other parties filing for damages, due to loss or disadvantages brought on by incomplete services and production.  Filing for damages are methods complying parties use to recover any debt gained from irresponsible parties.
There are five basic sections a party is able to file damages for breach of contract. Some courts may require the party that broke the contract to continue with requirements agreed to when the contract wad made, this is known as specific performance. Filing for damages of specific performance are used when a contract involves a transaction of goods or services towards a party and the recovery of monetary damages will not aid in the breach of contract.  
Recovery of compensatory damages only aid in mending the breach of contract when a party suffers economic loss. If the breach of contract leads to consequential damages, the effected party has the right to pursue recovery. Consequential damages are indirect results of a individual breaching a contract. This right of filing for damages are great for issues that may not be detected right away due to breach of contract. Some individuals or court systems looking to make examples out of individuals who have participated in the breach of a contract may sue for punitive damages. 
Suing for punitive damages are not means to recover money or services.They are punishments issued by the court to make an example out of individuals who have failed in holding up their end of a contract agreement. Some contracts contain liquidated damages, which are specified during the contract agreement. These damages are implemented as a measure to prevent breach of contract from occurring. Most courts are against the implement of liquidated damages and won’t enforce them if they are used as a method of punishment.
Filing for damages provide assurance to individuals who comply to their original agreement. In the event that a member of the party fails to withhold their end of a contract agreement, contributing members have the right to file for damages. 
This process helps performing parties recover any losses suffered from individuals who breach contracts. Some forms of damage recovery ensures that the service is carried out when a monetary settlement cannot fix the problem.

The Best Defenses to a Valid Contract

The Best Defenses to a Valid Contract

There are certain defenses individuals can apply if they are in violation of breaching a contract. It is key to understand the defenses available. They can prevent parties from being wrongfully sued or having other penalties apply. Some forms of defense include pointing out performance while others may reveal  parties that take advantage of forming a contract under misleading circumstances.
All individuals who participate in forming a contract need to be aware and understand its terms, this is known as capacity. All parties need to have the same idea of capacity when a contract is drawn. While most adults have a capacity to understand, any person under intoxication as well as minors and those with mental incompetence have a disadvantage of understanding the terms of a contract. Most states consider individuals under the age of 18 as minors. It is understood that minors may have a lack of capacity to fully understand the terms and conditions within a contract. 
Courts see and contract containing a minor as voidable, and give minors the right to cancel the contract anytime before they are considered legal by the standards of the law. Although minors are not held responsible for complying to a contract, if they cancel a contract all benefits received has to be returned. Contracts are also voidable for individuals who suffer mental incompetence. 
It is understood that a person of mental incompetence lacks the natural capability to fully understand a contracts terms and conditions. In civil court a person who is mentally incompetent cannot legally enter a binding contract. If a person is deemed mentally incompetent the contract can be completely voided since the obvious defect within a contract exists. 
Individuals also have the right to defend their affiliation to a contract if they were under intoxication at the time a contract was drawn. When a person is intoxicated they are incapable of understanding the terms of a contract, so although they may agree under intoxication they are not fully aware to what they are agreeing to. If a individual can prove that a contract was drawn under intoxication the court will void the contract.
Other than individuals proving ineligible capacity by being a minor, mentally incompetent, or under intoxication; there are other common defenses to a valid contract. If a party feels pressured to enter a contract by force or coaxing by another party, they can fight the terms of the contract since it essential violates the free will to participate.
Other parties that enter a contract also have the right to defend the contract, if any individual violates the good faith that all members of a contract agree to initially. Some individuals can defend a contract do to circumstances that may arise out of their control, known as impossibility of performance.
Normally when individuals form a contract it is made under the assumption that all parties will hold up to their agreement. Breaching a contract can send individuals through troublesome legal matters that no one knowingly wants to be a part of. Defending a valid contract can stem from someone’s lack of capacity to fully understand a contracts terms and conditions.
Any individual who is a minor, mentally incompetent or under intoxication has the right to have the terms of their contract dismissed. Other defenses to a valid contract exist  for individuals that sincerely cannot keep their end of the bargain for situations that arise out of their control. 

Learn About Termination of Contractual Duties

Learn About Termination of Contractual Duties

Once a contract is set into place parties are held accountable for upholding their end of the bargain. Other than the acceptable defenses to a valid contract there are other instances that can relinquish a persons responsibility to a contract.This termination from duty makes the breaching aspect no longer apply.
The court system will excuse contractual duties if  the aspect of  termination is legal under the Voluntary Act. Aspects of contractual duties are applied by the parties or according to the standards of the law. A party can be withheld from the conditions stipulated in a contract; if it is found that there was a premeditated purpose in mind prior to the contract being formed.
Meaning if a person enters an agreement with an existing purpose, not made aware at the time the actual contract is finalized they can be dismissed of their contractual duties. Other ways to terminate contractual duties are through impossibility or impracticability which makes a party incapable of completing the terms of a contract. Impossibility or impracticability can prevent a party form upholding their end of a contract because of death, illness or as the result of another party.
Other types of voluntary discharge from contractual duties are accord and satisfaction as well as novation. The issues of accord and satisfaction work hand in hand. Accord is identified as being an agreement made between parties to end a dispute within a current contract. If parties are within contract and their is conflict many times the conflict will be resolved by accord and satisfaction. With accord and satisfaction the parties will come to a new agreement stemming from the old contract dissolving the conditions of a old contract and making it anew. 
The accord is considered the new agreement while the satisfaction id the plan for carrying the new agreement out. Termination of a old contract release individuals from their contractual duties, be creating a new contract where new responsibilities are produced. When a contract is given a choice of novation, the parties in a contract are allowed to perform substitution.
 In order for the conditions of a contract to be carried out, the setting between parties are allowed to be substituted with all parties agreeing to release a individual from their responsibilities since a new party will be taking their place. This will in essence create a new contract that contains a different set of participating members.    
Termination of contract provides a way of for participating parties to be released of their contractual duties. This approach is acceptable by the court system which includes negotiable tactics as well as other measures that will immediately be considered.

The Uniform Commercial Code

The Uniform Commercial Code

The Uniform Commercial Code (UCC)  is one of many acts of contract law set into practice to simplify and protect the sales and transactions conducted by commercial businesses. The code was established to cater to the need of unifying business practices as companies grew, developed, or expanded across the United States. 
This part of the contract law was drafted by a series of top scholars who found the need to implement methods of organization for business transactions to run at smooth pace.The UCC code allowed each separate entity that supported a business accountability for there actions. 
First established in 1952, some form of the UCC code exists in each state today. The rise of business development in America along with these business being dependent on another business in one form or another is the exact reason why this act was drafted. 
A contract Law safeguards conditions of agreements made between businesses protecting companies and providing a sense of insurance to businesses in the event of a bad transaction. The UCC  codes primary purpose is to protect all transactions involving personal property. Personal property is identified as being any property that is considered tangible or movable and not the actual “real” property in itself. This can be a number of things including livestock, furniture, clothing, or market goods.
The UCC code in itself is a reference to a series of law practices that should be applied to each state. Once a state chooses to abide by the UCC code, the state implements the code into its state code of statues. From there the state has the option of implementing the UCC code in its entirety or applying parts of the code  with specific changes. If a state decides to alter anything in the UCC code the changes need to be specific so it has no chance of interfering with the productivity the code was meant to represent. 
Since this code can vary from state to state it is an important practice for businesses to be familiar to how the code applies to certain states of  interest before business is initiated. The UCC code protects contracts and transactions in any from of breaching that may take place after a contract is drawn. So many things can go wrong between business transactions after a contract is made. The contract law provides guidelines that indicates clear methods for neutralizing bad business transactions.
The application of the UCC code provides a buffer for all the circumstances a business transaction may face by imposing a good measure of faith for businesses to stand by. Private property is protected in any event from damages, loss, failure to deliver, crop failure or any other case that prevents a transaction from running smoothly. 
Those conducting business in various states should be aware of how the UCC code is applied to each state independently. The enforcement of contract law, has helped streamline business transactions  as well as decreased the need of legal presence for contacts to be drawn.