The purpose of contracts is to legally set out the details of an agreement between two parties. This process, although meant to clarify and define the requirements, can frequently create a dispute with regards to the terms as previously agreed. In this case legal representation is consulted on behalf of both parties, who try to reach a resolution.
In legal terms, a contact is any written or spoken agreement between two or more parties. It can be regarding any number of things: land, employment, business, sales, tenancy etc. The contract, if created correctly, should be legally binding. Contracts involve a process of offer, acceptance, consideration, intention to be legally bound and finally certainty of terms. All parties must be of sound mind to enter the contract; for instance intoxication or those suffering from mental disorders are not considered able. Oral contracts can still be legally binding; however it is always preferable to have such agreements in writing and signed – so as to supply courts with clear evidence of terms if any issues do arise.
When it comes to contractual disputes, there are many reasons why parties may get into a disagreement. If a contract is not thorough and does not contain enough detail, then previously unforeseen issues may cause ramifications. This is why it is integral a business has expert contractual representation from the start. Other issues commonly emerge when one party breaks the terms as explicitly set out in the contract, such as in the recent case of Sanford Burnham Prebys and the state of Florida. The state had clearly stated numerous, clear conditions in the contract that were not met – one of which was that the company had to create many new jobs. As the organization has not provided these and is considering leaving its current location (it was required to run on the site for at least 20 years) the state has demanded SBP pays $77.5 million dollars back.
When a dispute such as the above happens there are a few options for a party to consider, and they should seek a legal expert who can advise them based on the specifics of their case. In some instances, a lawyer may recommend to settle out of court through negotiation, settlement, arbitration and mediation. If these are not possible or desirable, then the dispute must be resolved in court. For a breach of contract, damages may be awarded or an injunction may be attained. Remember to always seek an expert who has a great degree of experience within this field – contact law is extremely complicated and you should always choose the best representation in order to ensure your success.