What is Contract Law |
Posted: February 1, 2023 |
Take a moment and consider the number of contracts you’ve signed in the past year. From a non-disclosure agreement in the workplace to signing up for a new cell phone subscription, contracts lay the foundation for countless everyday agreements, providing legal accountability between two parties. What Is Contract Law?A contract is a legally binding agreement between two or more parties that outlines expectations, obligations, and limitations. While contracts can be verbal or written, the latter is easier to reference and enforce. Contract law is the group of laws that regulate how contracts are created and enforced. Contract law will cover certain details, such as the following.
Key Components of a ContractThere are a few key details to include in a valid contract. A contract lawyer will help outline these details and ensure they are legally sound.
Once a contract has been signed, it is legally binding. If the contract is breached, then it may require legal enforcement. The most common reason that this occurs is when one party fails to perform as promised or if one party prevents the other from performing their part of the agreement For a contract to be legal, it must represent a legal activity, so it can be enforceable in court. It is not legally enforceable if the activity is illegal, such as dealing with illicit drugs. Contracts vs. AgreementsIt’s important to note that contracts and agreements are not interchangeable. An agreement is an understanding that may or may not be legally binding. In contrast, a contract is a type of agreement that is legally binding in nature. Agreements are usually informal and rely on the honesty and integrity of all parties involved. A contract formalizes the agreement and makes it legally binding. As such, breaking a contract may have legal repercussions. The professor I had for contracts law in law school put it this way, “Once you have it right, then write it!” Written contracts make it so that there is less likelihood of a disagreement as to what the parties have agreed to, and therefore, less likelihood or need for litigation. Different Types of ContractsDifferent types of contracts are governed by contract law, such as the following.
Whatever the type of contract, a few details are required to make it valid. For example, it must not violate public policy, all parties must consent, and the terms must be agreed upon. The Role of a Contract LawyerA business contract lawyer provides help and legal assistance with business contracts, using their knowledge of contract requirements and laws governing contracts within each state. A contract lawyer helps draft, review, and negotiate business contracts. Some contract lawyers take it one step further and specialize in certain areas of law, such as business law for buying and selling businesses. A contract lawyer is especially useful when dealing with complex documents. If you’re ever in doubt about the terms of a contract, then a contract lawyer can help clarify details and negotiate the terms. At Handin Law, we offer legal services in many fields from business law and estate planning to probate, real estate purchases and sales and title insurance. Contracts lay the foundation for agreements in each situation, and we’re here to guide you through the process. Give our helpful team a call at 1-877-815-4560 for more information on legally-binding contracts and other legal matters.
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