Contracts are a vital component of everyday life. Without contracts, people would be able to renege on promises and corporations could ride roughshod over their employees, with no legal basis for accountability. Here are five common instances where entering into a legal contract is either necessary or recommended:
1. Business deals
Probably the most common area of contract law, business dealings revolve around contracts and agreements. Contrary to popular belief, commercial contracts do not always have to be written down, although it is recommended that, to avoid disputes or confusion, a legal professional is consulted and a tangible agreement is put in place.
Legal contracts are used in the business world for a range of reasons, but usually they relate to the trading of goods. If your business is selling items to another company, for example, you will want to secure assurances regarding price, delivery details and quality of the items. Contracts that can be held up in a court of law negate the chance of someone ripping you off. Other common contracts in the business world include intellectual property safeguarding and confidentiality agreements.
2. Employment contracts
All businesses need to enter into an employment contract whenever they hire anyone to work for them. The details of these contracts will depend on the status of the employee, and whether they are permanently employed or a contractor, but the agreement should highlight the workload of the role, the conditions of employment and the rights of the worker, to avoid disputes further down the line.
3. Property sales
Exchanging contracts between the buyer and a seller is a vital stage in the home-buying process. Until contracts have been agreed and signed, the sale isn’t legally binding, and either party can pull out of the deal without incurring too much financial damage. Contracts in this area do not have to be set out in writing.
4. Marriage law
Although civil partnerships are now widely recognised in the western world, traditional marriage is still a legal union between two people, with a legal contract underlying the social concept of matrimony. Marriage law links into other areas, such as child support, financial responsibilities and property law, and as such, it is taken very seriously. If a couple wants to divorce, or terminate the legal marriage contract, they must have a valid reason and must have been married for at least one year.
5. Buying a car
Whether it’s a brand new Ranger Rover or a second-hand Vauxhall, when you purchase a car, either from a private seller or a dealership, you should have a contract drawn up that enables you to seek recourse further down the line should something go wrong.
“Do I need a legal contract?” is a question you’ll rarely ask yourself, but as outlined above, contracts are more common than we’d think, and it’s always better to be safe than sorry, especially in the world of business.
