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What Are Contracts

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.

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