For a contract to be created, there must be an offer and an acceptance of that offer. Usually these two basic principles are easy to spot in practice. For example, a homeowner may offer compensation to a business in exchange for home improvement work to be done within a specified amount of time. What happens, though, when an offer is made and there is no explicit acceptance of it?
Contracts are so ubiquitous in the business world that their importance is often observed as being diminished. This is a mistake, though. These agreements, when executed correctly, are legally enforceable, thereby giving the parties to the agreement to take legal action to ensure they do not lose money or specific performance of contract terms when a breach of contract has occurred. Of course, oftentimes those who are accused of breaching a contract dispute that they have done so, which sets the matter up for negotiation and litigation where the stakes can be quite high for all parties involved.
A carefully negotiated and well-written agreement can decrease the risk of a Louisiana contract dispute. However, contractual agreements are often drafted in the business world without clearly delineated terms, like informal oral agreements or standardized forms. While these agreements may be enforceable, sometimes, it is hard to discern when they are and when they are not, leaving the matter open for legal argument. Therefore, those who find themselves dealing with agreements or certain terms of an agreement that is not reduced to writing should make sure they understand what is considered by judges and juries when these contract disputes arise.
When Louisianans think of contracts, they often envision written agreements that are aggressively negotiated to obtain the best terms. In theory, this is correct, but there are certain circumstances where a contract can be created without a written agreement. This often occurs when verbal promises are made. Yet, determining where the line between a promise and a legally enforceable contract lies can be tricky, which is why these matters are often resolved through legal action.
Contractual agreements have become so common that they seem to weave their way into our day-to-day lives without us even batting an eye at them. This often means that many individuals agree to the terms of contracts without even scrutinizing them. This is dangerous because contracts are legally enforceable, which means that failing to abide by their terms can result in a lawsuit being filed against you. The ramifications can be quite costly to your finances and your reputation.
Louisiana contracts often define business relationships. They can lay out expectations and obligations, and they can be negotiated to ensure that all parties involved feel like they got a fair shake. However, since the parties to a contract sign off on his terms, those who fail to abide by those terms can be held liable for their actions or in actions. This often takes the shape of a business lawsuit and a judgment requiring a party to pay damages. Not even big corporations are immune from contract disputes.
Those who consider breach of contract disputes often view them as purely financial matters. After all, the damages imposed for breach of contract are typically financial in nature. Of course, specific performance may also be court ordered following a breach of contract. However, there is much more at stake in breach of contract cases than money. This is why those creating contracts and those embroiled in breach of contract disputes need to ensure that they carefully protect their legal rights.
Last week, on this Louisiana blog, we discussed implied contracts and the effect they can have in the business realm. These contracts, as well as explicit contracts, can shape the way one conducts business. But, relying on these agreements can harm parties when the other parties fail to live up to their end of the bargain. When other parties accuse one of failing to abide by their obligations under a contract, they threaten a lawsuit. If one loses, they may be found liable for paying significant damages that can affect them personally and their business.
Most Louisiana contracts are carefully negotiated, which means that the parties involved have a detailed understanding of their obligations and expectations. Failing to abide by the terms of a contract, of course, can lead to a breach of contract and significant harm to the wronged party. This most often involved financial losses which can then be recouped through legal action.
Without legally enforceable agreements, the Louisiana business world would collapse. Businesses would not be able to rely on supply to meet demand, and suppliers would not be able to rely on consistent purchases and purchase prices to ensure their viability. Fortunately, strongly drafted contracts are legally enforceable, which means that, when adequately created, these documents can set expectations and protect all parties involved in the event that one side does not live up to their obligations. When a party fails to adhere to the terms of a contract, then a breach has occurred.