Business Contracts

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The term contract law is familiar to most people, but the common uses of contracts in everyday transactions are not as clearly understood.  Contract law was implemented in order to provide an orderly, controlled, and enforceable way for two parties to conduct a business transaction.  Originally, contracts were designed for products, but today they also include services and other “performances” (agreed up actions for compensation).  By the end of its lifetime, a contract is either fulfilled or breached.  When a contract is fulfilled, then both parties have satisfied the terms of their contract with respect to the other person.  During that lifetime, the contract serves as a template and a checklist for the performance of the one party and the compensation given by the other, in way that can always delineate to either of the participants or to a third party exactly what terms were agreed upon.  If a contract is breached, then it changes from a set of instructions to a set of liabilities against the failed party.  If the contract is properly executed, then the breach may be addressed in court and the expectations that have been breached can then become enforced by the court.  At that point, the contract is replaced by a court order, and a breach of the order will carry criminal liabilities.

Some common uses of contracts are car loans, house loans, and rental agreements.  It works in the favor of anyone to learn enough about basic contracts to find out what their legal commitments are when they enter into any of these agreements.  Some people blithely sign contracts, and then when they find themselves in court on an unfair breach suit, they try to appeal to the court that “the contract just isn’t fair”.  They then find to their dismay that the court is not there to determine right or wrong, fair or unfair, but to determine the legality and enforceability of the contract.  The fairness of the agreement is always left to person who signs his name and the responsibility and consequences of the agreement are solely in the hands of the person who accepts the contract.  This yields two important rules of thumb: understand the basics of contract law and the specifics of any contract presented and second, don’t sign anything until you do.  The signature is the binding point.  Before the signature, you are still free.  After the signature, you are stuck.

Once you learn a bit about contract law, you will recognize their use in all sorts of areas.  These include business contracts, service contracts, small businesses contracts, and business agreements.  Each of these is used to help specify and guarantee the performance between two parties.

Contact the Law Offices of Ronald J. Salvato to help you with any contractual needs you have.