Contracts
Businesses, consumers, nonprofits, and governments buy goods or services and often enter into written contracts or agreements. In a written contract, the parties involved usually have specified the terms and conditions. For instance, paying this price at a particular time will result in the delivering goods or providing services. However, contracts may contain such numerous provisions as what constitutes a default or failure to perform; who pays for delivery; what warranties, if any, apply; what remedies are available for a contractual breach; if a dispute arises, whether the parties involved file a lawsuit in court or arbitrate; and where the dispute will be heard. Without a written contract, the law sets the available rights and remedies for a breach. The party that writes the contract often wishes to limit the other side’s access to those rights and remedies.
Most transactions go smoothly and cause no stir, or if there is a stir, the issue is not serious enough to warrant much effort for correction. Nevertheless, some transactions fail to meet the parties’ expectations, and serious disputes arise. Therefore, contracts are important legal documents that outline what individuals and businesses are to expect in their transactions and how to settle disputes. They function as tools individuals and businesses use in order to set expectations.
Written contracts are easier to enforce than oral agreements. With an oral contract, the parties involved may dispute what they actually agreed to do. With a written contract, however, the parties involved can examine the document, determine what the agreement actually was, and often prevent disputes. Fewer disputes translate into certainty and satisfied parties and benefit all parties involved. Make no mistake: Courts routinely enforce contracts, but there are defenses and exceptions to this general principle.
In reality, most standard contracts are written by lawyers for businesses. The contracts are written with an eye to protect the lawyers’ clients, the businesses, not the consumers. Contracts often limit a consumer’s or another business’s rights by requiring arbitration, requiring him or her to relinquish the right to trial by jury or judge, limiting damages and warranties, or imposing procedural demands when the consumer receiving the goods or services does not receive what he or she bargained for.
If a consumer does not pay for the goods, a dispute arises, and he or she and the provider go to court or arbitrate, it may require him or her to pay its attorney’s fees and court costs. Thus, before signing contracts, businesses and consumers should read them. For a contract involving substantial money, consumers and businesses should understand what they are signing and agreeing to before signing it. Remember: Courts usually honor written agreements regardless whether they favor one side over the other.
Most people are not familiar with the jargon and legalese in contracts, and they sign contracts that they do not fully understand. Not understanding a contract or standing alone is not a defense. If consumers or businesses are not careful, they may find themselves trapped in a contract with burdensome provisions, which significantly disfavor them.
If you are drafting or signing a contract where the stakes are critical or a substantial amount of money is to be paid, consider consulting with a lawyer. If you are in a contractual dispute that you cannot work out with the other side satisfactorily, talk to a lawyer. It is better to have a legal expert helping you understand your options and assert your rights than to try to do it alone, especially when the other side is represented by a lawyer. If you have questions about a contract, you are uncertain whether to sign a contract in the first place, or you face a contractual dispute, talk to a lawyer. For more information, contact Nashville Attorney Perry A. Craft.
Perry A. Craft has dedicated his life to helping people in need. He has tried, settled, or resolved numerous civil and criminal cases in State and Federal courts, and has represented teachers and administrators before school boards, administrative judges, and the state Board of Education. Learn more about Attorney Craft.