Contracts
Contracts set in writing the promises of two individuals or business entities, which the law will enforce. Contract law treats these promises as duties that are legally binding as long as the parties have exchanged adequate consideration (money or other benefits) for the promises. The contractual agreement can enforce or prevent a particular action.Types of Contracts
U.S. contracts are a segment within commercial law, based on The Uniform Commercial Code. However, they are primarily governed by state statutes.
Examples of contracts include:
- Leases
- Partnership agreements
- Incorporation papers
- Trademarks and copyrights
- Deeds
- Non-competition agreement (one party agrees not to perform activities that would be in competition with the other party)
- Non-disclosure agreement (one party agrees to not disclose the other party’s confidential business information and trade secrets)
- Hold-harmless agreement (one party agrees to indemnify and hold harmless the other party from claims resulting from the first party's conduct)
You will want to retain a lawyer to draw up your contracts and also to represent you as the plaintiff or defendant in a potential lawsuit for breach of contract.
Breach of Contract
When one of the parties to a contract fails to fulfill its obligations or makes it impossible for the other party to perform its obligations, the party with the potential loss can file a lawsuit for breach of contract. By law, the injured party is entitled to an award of money to compensate for the damages equal to the money expected from performing the obligations of the contractual provisions. However, the law generally holds that a plaintiff can recover damages only up to the amount that was anticipated at the time the contract was entered into -- unless it can be proved that the defendant knew or should have known of other circumstances at the time.
U.S. law includes a provision for force majeure clauses in contracts. This contractual language frees the parties from their obligations and liabilities in extraordinary events beyond their control (such as a hurricane, flood, war, “act of God,” etc.).
Government Contract Law
A different set of laws and regulations govern portions of U.S. federal contracts for services and goods, primarily in how funds are designated for civilian contractors and how those contractors are selected. These contracts’ terminology and clauses differ from civilian contracts. For example, there is not usually a “termination-for-convenience” clause.
Related Links: |
|
