Contract

Contract

1. Defined as:

   • A contract is a legally binding agreement between two parties

2. Main elements of any type of contract:

   • Consideration
     • Is the price paid for a promise made by one party to the other party.
       • may be:
         • A right, interest or benefit going to one party
   • Intention to create legal relations
     • The parties to the agreement must intend to enter into a legally binding agreement.
   • Legal capacity
     • It refers to:
       • The legal ability of an individual to be subject to rights and obligations
         • Not all people are free to enter into a valid contract
           • People who have a mental impairment
           • Young people (minors)
           • Bankrupt people
           • Corporations (people acting on behalf of a company)
           • Prisoners
   • Consent
     • Entering into a contract must involve the elements of free will and proper understanding of what each of the parties is doing
       • may be affected by
         • Mistake
         • Misrepresentation or misleading conduct
         • Duress
         • Undue influence or unconscionability
         • Unfair contract terms in standard form contracts.
   • Offer and acceptance
     • A contract is formed when an offer by one party is accepted by the other party.
       • An offer is a definite promise to be bound, provided the terms of the offer are accepted.
       • Acceptance of an offer occurs when the party responding to the offer agrees to the offer by way of a clear statement

3. Illegal and void contracts

   • These include contracts:
     • To commit a crime, a tort or a fraud
     • That are sexually immoral
     • That prejudice public safety, including good relations with other states or countries
     • That prejudice the administration of justice
     • That tend to promote corruption in public life
     • To oust the jurisdictions of the courts
     • To defraud the revenue
     • That are prejudicial to the status of marriage

4. Residential Lease Contract

   • It includes the following elements:
     • Names of Tenants
       • It includes the first and last name of all tenants who will be residing in the premises.
     • Lease Term
       • It states the specific dates the lease will be begin and end
     • Payment of Rent
       • It includes:
         • Amount of rent
         • Deadline
         • Form of payment
         • Name of person who a check should be made out to
         • Place where the rent be delivered
         • Direccions on what happens if the rent is late or short
     • Deposits
       • A deposit is requested as damage insurance and unpaid bills.
         • it includes
           • how much the deposit will be
           • where it will be held
           • when it will be returned
           • what items will be deducted from the deposit
           • which the deposit will return to
     • Fees,Fines,Charges
       • it states the fees or charges the tenants will be responsible for
       • it spells out what utilities tenents will be responsible for if they are not included in the rent
     • Responsabilities
       • it datails responsibilities of tenants and landlords
         • it includes
           • to whom and when rapairs are to be reported
           • when repairs will be made
           • lawn maintenance requirements
           • snow removalduties, grbage/recycling disposal
     • Access to Premises
       • it idicates expectations for acces to the property for repairs or inspections and/or to show it to potential tenantsor buyers
     • Use
       • it states that the intended use of the property is as a residence for only those included in the laese
     • Other Rules
       • it provides all other rules or obligations that tenants re to abide by

5. Employment Contract

   • is a written legal document that lays out binding terms and conditions of employment between an employee and an employer.
     • it includes
       • Reporting relationships
       • Full salary
       • Employment benefits
       • Paid holidays
       • Paid vacation
       • Paid sick leave
       • Sales commissions
       • Bonus pay potential and how bonus is determined
       • Profit sharing and how it is determined
       • Stock options and stock buyback provisions
       • Employment contract signing bonus
       • Phone allowance
       • Car mileage and travel allowance
       • Moving and transition expenses
       • Any additional negotiated perks

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