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Contracts- An Important Tool

Posted by Hundallegalgroup@gmail.com on February 28, 2016 at 3:25 PM

Importance of Contract Law


Contracts are an important aspect of our society. The United States and other countries rely on voluntary agreements by free exchange in the marketplace. Contract law protects individuals, groups, assets and services.


Contract Definition


A contract is a voluntary agreement made between two parties that constitutes a promise in exchange for a promise. Contracts are incredibly common in our day to day lives. For example, if you go to a grocery store, you promise to pay an amount in exchange for those groceries and the grocery store promises to give you possession of the groceries in exchange for payment at the time of purchase.


Problems


While most of these agreements are straightforward and done without a problem, problems can easily arise. Here is a simple example: If you go to purchase a bog of potatoes, and you offer to give me $5 for a bag of potatoes, and if I agree to accept it as payment in full for the potatoes, we have made an oral contract that we can perform immediately: You give me a $5 bill, and I give you the bag. As this example illustrates, we engage in contract agreements almost daily. But what if you discover that my potatoes were molding when you bought them, and you will not be able to use half of the potatoes in the bag? What if I take your $5 bill, but then refuse to give the bag of potatoes? What happens if your $5 bill turns out to be counterfeit? If you take the potatoes but refuse to pay, or pay with a check that you later cancel or that is returned unpaid by the bank? What if the bag rips while you are carrying it, and all the potatoes fall to the ground and are ruined? Thus, problems can and do often arise in even the simplest transactions.


Of course, you will not want a contract drafted for daily transactions, as the example illustrated above. However, other interactions require contract drafting. In more complicated exchanges, the possible difficulties are endless and sometimes difficult for the parties even to envision in the beginning.


These problems will result in high attorney’s fees and will be time consuming. To avoid these issues, it is necessary to have a proper contract drafted at the outset. Contact Hundal Legal Group LLP today to have a contract drafted for you. Our contract drafting prices are reasonable and will save you money in the long run, not to mention the headaches and worries of a possible breach by another party.


This information does not constitute legal advice or an attorney client relationship*

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