Information About Contracts

A contract is simply an agreement between two or more parties wherein consideration, usually money, is given in exchange for either services or a good/materials. It is important to identify the parties, the exact nature of the consideration, the exact services to be performed, the amount involved of goods or moneys, the time to start and end, the authority of the party to enter into the contractual agreement, whether both parties are actually having a meeting of the minds, a definition of terms, a voluntary disclosure of any other relevant facts, etc.

Some of the basic points to keep in mind in entering into this complex area of the law are:

     - Whether all prior correspondence and agreements are
       merged into the contract.

     - Whether additional terms can be added to the agreement
       and, if so, under what circumstances and by what method
       (in writing).

     - What conditions will deem the agreement to be null and
       void or be reasons for rescision?

     - Whether both party's have true authority to enter into
       the agreement.

     - Defining what constitutes performing the job (explaining
       quality, time, specifications, permits, standards to be met,
       licenses, etc.).

     - Whether a time of the essence clause will be necessary if
       one party fails to timely perform the job/duty.

     - Clearly defining the nature of the payment as well as the
       method and amount.

     - Whether a party will be held harmless if any one unforeseen
       incident occurs (such as a natural catastrophe, death of a
       party, loss of equipment, etc.).

     - Whether illness or disability will deem the contract renewable
       or modifiable.

     - Whether there will be insurance coverage, and by whom, for
       the object or project, and obtaining copies of the policy
       and conditions.

     - Whether either party has the right to inspect the site/object
       or performance periodically and/or under what terms or conditions.

     - In the event of a disagreement, whether the party's agree to a
       specific amount of money for damages, or a specific arbitrator
       or other such condition.

     - Whether moneys or goods must be payable in advance or not.

     - The party's should make it clear that the written agreement
       is the only agreement valid so that oral discussions are not
       made part of additional terms.

     - Whether the party's will agree to a clause in the agreement
       for a right to cancel the agreement if a breach of contract
       occurs.

     - What constitutes a breach of contract.

     - Whether the later illegality of any one section of the
       agreement will render the entire agreement invalid or not.

     - Which party assumes the risk of damages for loss of property
       and at what point.

     - Whether an escape clause is permissible or warranted.