Contract Law
What is contract law?
Contract law forms the basic part of our society as it lies at the heart of our law system. It is a voluntary, private agreement made by parties that agree to exchange valuable things with one another. Most exchanges are straightforward matters that easy to perform without encountering any problem. However, some exchange may not be performed to everyone satisfaction.
In most cases contract performed should include an implied-in-law covenant of good faith that each party agree to act in good faith and deal fairly with each other. This means that no party is expected in bad faith to attempt to cheat the other party. However, in some cases, complicated transactions may lead to difficulties that the parties may not be envisioned at the onset. Some complication may take a lot of time and resources to solve.
To avoid complications, it is important to have a proper contract that the onset of the contract. A written contract can be the most appropriate form of contract to use. However, both parties should reasonably trust another’s good faith and have a good understanding of the exchange before undertaking it. The written contract should state clearly the obligations of each party and the essential terms of the exchange. A good contract should at least cover possible complications that might arise.
Various kinds of Contracts:
There are three types of contracts: written, oral and implied.
Implied contract:
Implied contract is mainly based on the decision of a court of law. They can be either written or oral, or even no agreement made. But, there is some enforceable agreement that courts can legally determine that the contract really existed.
Oral Contract:
The oral contracts are made verbally without any written document. This type of contract has many limitations as compared to written contracts as they are limited to time. For instance, the time that you can file a lawsuit that involves an oral contract is two years.
Written contracts:
Written contracts are written on a paper and include signatories of all parties involve. They are the most reliable type of contracts and are highly recommended.
Proving Implied and Oral Contracts:
The importance of implied and oral contracts especially in employment law is necessary to show that just cause is necessary before employment can be terminated. In case an employee alleges that an implied or oral contract require just before termination, the court will help to determine whether the allegation is valid or not.
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