Introduction to Contract Law

Definition of Contracts

In the simplest terms, a contract is a written or verbal agreement between parties where one party offers something, such as goods or services, in exchange for something from the other party. This can include business and employment agreements, sales and purchases, leases and rentals, and much more. Both parties must be aware of and willing to enter into the terms of the contract. Contracts cannot be formed with individuals who are minors or considered mentally incompetent.

Importance of Understanding Your Rights

Navigating the complexities of contract law can be intimidating. To ensure that your rights are being protected, it is imperative to familiarize yourself with the basics of contract law and secure experienced legal counsel to assist you in the event of contract disputes.

 

Common Types of Contract Disputes

Breaches of Contract

Contract breaches occur when one or more parties fail to uphold one or more terms of a contract. This entitles the other party to seek financial compensation or legal action.

Misrepresentation

Misrepresentations are untrue statements or claims which cause a party to enter into a contract under false pretenses. There are three different kinds of misrepresentation. Innocent misrepresentation means that the defendant was unaware that a claim was untrue. Negligent misrepresentation means that a defendant did not take “reasonable care” in verifying if a statement was true. Finally, fraudulent misrepresentation means that the defendant knowingly made a false claim or statement to get the other party to enter the contract.

Unconscionable Contracts

Some contracts are so unfair that the law will refuse to uphold them. Unconscionable contracts are viewed as extremely imbalanced towards one party or the other, often made with significant differences in bargaining power. These contracts will be declared void by a court.

 

Your Rights as a Party to a Contract

Right to Fulfillment of Contract Terms

If you have made a fair and valid contract with another party, you are entitled to the terms that were agreed upon. These can include the rights to buy or sell particular goods or services, employment opportunities, refunds or repairs, among many others.

Right to Seek Damages

If a contract is breached, you can pursue legal action against the breaching party to receive compensatory damages. These damages are meant to cover losses incurred by the breach of contract and in many cases include interest.

Right to Rescind the Contract

At any point in time, concerned parties may choose to mutually rescind their contract. This cancels the contract and restores conditions to how they were before the contract was made. If a contract is rescinded, no damages can be allotted to any party.

 

Steps to Take When Facing a Contract Dispute

Document Everything

Before a contract dispute even occurs, it is extremely helpful to make sure that the contract and all communications concerned are well-documented. This means creating a written document that clearly outlines all terms, agreements, and expectations of both parties. In the event of a contract breach, be sure to collect evidence that indicates how a contract has not been upheld. This will make the process much easier if legal actions are necessary.

Communicate with the Other Party

Many times, contract disputes stem from simple issues such as miscommunication and honest mistakes. Be sure to have an open conversation with the other party to see if the dispute could be resolved easily.

Consult Legal Counsel

Contract law can be intimidating. Consulting experienced and qualified attorneys can help ease your mind and provide ideas about the best path forward to ensure your rights are protected. Brinson Askew Berry has a number of legal professionals ready to help at any time. Our focus is on achieving the most favorable outcome for you in a cost-effective manner.

 

Alternative Dispute Resolution Methods

Mediation

There are a few options for resolving contract disputes that are worth considering before pursuing legal action. Mediation is a non-binding process involving a neutral third party who serves as the mediator between the members of the contract. While it is similar to arbitration, it is often a more casual arrangement intended to promote communication between parties.

Arbitration

Arbitration involves an official position known as the arbitrator, who is often a retired judge or someone with legal or industry experience. Each party will have the opportunity to present their case to the arbitrator, similar to a court case.

Advantages of Alternative Dispute Resolution

There are many advantages to settling contract disputes outside of court. Mediation and arbitration are less expensive and time consuming than litigation. Additionally, these methods can remain private as opposed to court cases, which are public record. For information on how Brinson Askew Berry can assist you with dispute resolution, visit https://www.brinson-askew.com/mediation-arbitration/.

 

Legal Remedies and Litigation

Filing a Lawsuit

If you are considering filing a lawsuit for a contract dispute, it is important to talk to an experienced contract lawyer. Our team at Brinson Askew Barry has a number of highly qualified legal professionals with experience in contract disputes who are ready to review your case, offer advice, and ensure your rights are protected every step of the way.

Potential Outcomes of Litigation

In the event of litigation, there is potential for the court to award damages (the losses caused by the breach of contract). For some cases, you can sue for specific performance, which will require the breaching party to perform the service expected of them in the contract. If the contract is found to be unconscionable, it will typically be declared void, and no damages will be awarded to either party.

Understanding Legal Fees and Costs

Legal fees and costs can be intimidating. It is important to work with an attorney who is transparent and clear about their billing. Additionally, the damages awarded by the court may or may not cover the cost of hiring an attorney.

 

Preventing Future Contract Disputes

Clear and Concise Contract Language

Making sure that a contract uses clear and concise language is one of the most effective ways to prevent contract disputes. The less ambiguous the terms and agreements of a contract are, the less likely it is there will be any misunderstandings.

Regular Reviews of Contracts

Regularly reviewing contracts can help you spot ambiguities or issues that may not have been apparent at first glance. Additionally, this can give both parties the option of renegotiation if a contract is not accomplishing the desired goal.

Importance of Legal Advice

Having a trustworthy legal expert to advise you throughout the process of contract drafting and reviewing is essential.  Their knowledge and experience will help create contracts that are legally sound and protect involved parties from liabilities.

 

Conclusion

Recap of Your Rights

If you are the victim of a breach of contract and attempts at mediation have failed, you rightfully deserve the terms and services all parties agreed to. In the event of a contract dispute, it may become necessary to pursue legal action in order to reach an understanding with the other party.

Encouragement to Stay Informed

Our team at Brinson Askew Berry is ready to assist you with any contract law needs – from drafting and reviewing to advising and litigation. Visit https://www.brinson-askew.com/contact-us/ to get in touch.