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  • Contract Law | Peters Law Firm, PLC

  • Contract Law

    What is a contract?

    An agreement between two or more parties to perform a service, provide a product or commit to an act and is enforceable by law.  There are different kinds of contracts with their own unique terms and conditions.
     

    What are six elements of a valid contract?

    For a legally binding contract you will need to demonstrate  (1) the offer; (2) acceptance of the offer; (3) consideration by each party; (4) mutuality of obligation what each party is obligated to; (5) competency and capacity of each party; and, not always but in certain select circumstances, (6) a written instrument.
     
     

    What laws help provide guidelines or govern breach of contract?

     
    The Uniform Commercial Code (UCC) is a standardized collection of guidelines which helps govern law of commerce.  Most states have incorporated UCC provisions in whole or ion part as part of state laws governing sale of goods.
     

    What elements will help you as a plaintiff when a contract is breached?

    As a plaintiff, you will have to prove three elements to make an effective case that a contract has been breached.
    • You have to prove the existence of a valid Contract.  This is a must in family or private businesses and is often overlooked.
    • There is a breach of the terms outlined in Contract.  In short, a contractual promise  has been broken which was specified in the contract terms.
    • Quantify how the Breach of Contract has impacted you economically

     

    What remedies exist for plaintiff when a contract is breached?

    There are two primary recovery remedy - (1) damages would be the money entitled to plaintiff in absence of breach and (2) requirement that the other party has to carry out its obligations. 

    There can be cases when in absence of an element of contract formation, the law can create a quasi-contract to address unjust enrichment which allows one party to keep receiving benefit without paying for it even though there is no formal contract in place. A corollary of the quasi - contract but pertaining to services is Quantum meruit. 

    Do I need a lawyer to write a contract?

    If you satisfy maturity and mental capacity requirements, you don't need a lawyer (besides the other party).  However, it is a good practice to consult a lawyer on complex contracts, involving business deals or where large sums of money have to be paid or obtained.

    How do I get out of a contract?

    The most effective clause to get out of a contract is if the competent parties have not made the contract voluntarily or there is insufficient consideration.  Than also, you have to have certain contracts in writing for them to be enforceable.  So me other defenses to get out of a contract would be (1)  illegality; (2) duress; (3) undue influence; (4) fraud; (5) mistake; (6) unconscionability; (7) performance incapacity; (8) frustration of purpose but it has to be resolute.  Any of these if proven can make the contract void. 

     

  • Peters Law Firm | Contract Law | Breach of Contract | Unjust Enrichment | Contract Fraud

    While contractual arrangements are generally cheaper and less formal to formulate or administer, we have seen that corporate law in relevant countries may not provide sufficient protection for minority shareholders and that the minority shareholders best address  to better protect their position using a shareholders' agreement.  Timothy Peters is an expert in shareholder contract law, please contact us for a free consultation on broad range matters pertaining to contract law.