A contract exists when there is an offer made by one party to which the other party accepts (absent circumstances limiting the ability to accept).
While most people think of a contract as a typed legal document that is signed and notarized by all parties charged, a contract can be created simply by words; in some cases, a contract is created by failure to respond or act. Contracts are put in place to protect both parties. Before you create a contract or sign one, it is best to have a lawyer review the contract. Below are some common components of a contract I will review with you.
The formation of a contract does not always mean the parties are obligated to the contractual terms. Enforceability of a contract must first be determined. Contracts must contain certain information and comply with Federal or State law to be binding. Hence, not all contracts are valid and enforceable.
Breach of Contract
If a contract is binding (enforceable), a party’s failure to comply with the contract may be a breach. A breach can be partial or full, where a partial breach may be rectified. A breach can require the breaching party to pay money, specific performance, or an obligation to refrain from an activity. If you feel that someone has breached a contract you will need to work with a lawyer to remedy the breach.
If a contract is confusing or the terms are unclear, there are many ways to determine the terms of a contract, including fair market value, previous dealings, and evidence not included in the contract.
Creating a New Contract
A new contract does not always eliminate a previous contract. In order to be certain that one contract’s terms prevail, certain language must be included in such contract. Otherwise, a contract can be unenforceable. This is another reason you should work with a lawyer to review your contracts.
When you purchase any item from a seller, you and the seller have entered into a contract. You agree to buy an item, usually for a sum of money; the seller, even without knowing, agrees to certain warranties. The warranty may be that the item is fit for an intended purchase or that it is safe for use. When an item fails in either warranty, a seller may be held liable for damages caused by breach of warranty. As the seller or buyer, if this happens you will want to work with a lawyer to resolve the breach of warranty.
Contact Keller Law LLP to create a valid and enforceable contract or assess the enforceability of an existing contract.