What is contract law?
Individuals and firms enter contracts daily, and these contracts have some terms which are legally enforceable through law courts. Disputes concerning these contracts sometimes arise when parties disagree on issues that were not put forward clearly for both parties to understand. In that case, it is prudent to get legal advice from a contract lawyer when you are drafting or while reviewing a contract. Contract lawyer will create documentations which highlight every aspect and obligations and put forward measures that can be taken to mitigate the risk and potential conflict associated with contracts entered by parties.
A contract is a legally binding law in agreements between two parties that is enforceable in courts in case one party or both parties fail to abide by the binding contract. This contract agreement may span from dozens of pages to a single page or even an oral agreement.
A lawful contract must contain the following details for it to qualify to be enforceable the courts:
- It must show the intention of both parties willing to create a legal relationship through the contract so that every party knows that the contract is legally enforceable and need to abide by it.
- Both parties should understand clearly what the contract requires of them, and they should be made fully aware of it.
- One party has to make an offer and the other party has to accept the offer for it to be a lawful contract.
- Each party has to part with something and receive something in return, and they should all be content with what they receive either in full measure or instalment and every detail should be captured in the contract if it involves instalment settlement.
- Each party should make aware of the obligations in the contract, including all the rights and obligations that are expressed under the contract. Contracts that involve high values like sale of land require to be written form whatsoever. While verbal contracts are the ones that require to be entered regularly and do not involve high values.
- Contracts drafted under a misunderstanding are not enforceable in a court of law that is why both parties need to be made to understand clearly what they are required of them.
On breaching a contract
It is common for contracts to be breached, especially where it involves the high value of money. When a contract has been breached by a party, or when one of the parties acts in contravention of the contract terms, the party affected by the breach of contract is required to take legal actions against the other party to have the legal contract enforced by the law courts. The decision of the courts may be to reward the affected party with monetary or material compensation. This is done when the affected party has suffered detrimental economic effects as a result of the breach of contract. In other scenarios, the courts may order the breaching party to comply with what is contained in the contract as the first warning. If the contractual obligations are still not yet followed after the first warning, the courts may be forced to take action by asking the breaching party to take a specific performance or else face the full wrath of the law. Which may be, the breaching party property is dissolved or be handed over to the affected party to compensate for the loss.
Taurus Legal are contract lawyers in Melbourne. They can help you in drafting contracts and in making sure that both parties uphold the obligations stated in the contract.