Contracts and Agreements Legal Terms and Definitions Glossary
One basic principle of contract law is that terms must be certain. can be found in the reluctance of English law to uphold 'agreements to agree'. . be part of a long term relationship, or a party has made an investment premised . background to this particular contract showed that operating outside of the. A contract is an agreement that commits you or your business to a course of action. Due diligence - the formal process of investigating the background of a contract must be made with the intention to create, if accepted, a legal relationship. At common law a contract is not enforceable unless the parties intended the The Transition Agreement contained a retirement provision the aim or objective of the contract and “the background commercial setting for.
Despite what many believe — and around one in four people living together think they have the same legal protection as married couples, according to research by the Co-op — there is no status in English law as a common-law spouse or partner.
The number of unmarried couples has doubled since the mid s to nearly three million, while the number of children living with unmarried parents has risen from 0.
In addition, there are an estimated 6, same-sex couples, not in a civil partnership, who have children. However, virtually nothing has changed in how the law treats cohabiting couples and their property if they separate. If a cohabiting relationship breaks down there is very little protection for the weaker partner, typically the woman, who often has children.
As a result, some cohabiting families can find themselves facing real difficulties should they split up, particularly when children are involved. In England and Wales, when married couples divorce or civil partners break up known as dissolution rather than divorceboth parties have a legal right to maintenance and their share of assets, including property and inherited property. The judiciary has complete discretion under marital law to take all the circumstances and history of the relationship into account and decide on a fair division.
Cohabiting couples have no such rights, regardless of the number of years they have been together and whether they have children.
Say, for example, partner A moves into partner B's property partner B, whose name is on the deeds, is the sole ownerthey live together and maybe have children. If they separate, whether after five, 10 or even 30 years, partner A has no right to personal maintenance from partner B even if she has always been supported financially. Partner A also has no legal right to a share of the property, even if he or she has contributed to the mortgage or paid in other ways, such as staying at home to care for the children.
So, unless partner B voluntarily agrees to a settlement, partner A could become homeless unless she can afford to go to court — see the box, right, on the case of Pamela Curran and even then there's only a limited chance of success.
Therefore it can cost an enormous amount of money to fight it out in court. Subject always to that. Rix L J gave the following pointers as supplemented by us: If there is no consensus at all on an essential part of the transaction, there is probably no contract. If one party has already had the benefit of performance by the counterparty in what was to be part of a long term relationship, or a party has made an investment premised on that relationship, the courts will be particularly willing to find that there is an agreement.
Even if they do not, such a term may be implied, either pursuant to statute as noted aboveor at common law. An arbitration clause can be of particular assistance, because: The contract before the Court of Appeal in the Mamidoil case was expressed to have a term of ten years, but was extremely brief.
The key terms were as follows: The Refinery wants and Jetoil accepts to manipulate via its Salonica Installations the quantities of not heated crude oil that the Refinery will buy and process for its own account in Skopje Refinery. Manipulation under this agreement means receiving the Crude Oil from the vessel, storing in tanks and loading on Rail wagons supplied by the Refinery with destination Skopje Refinery.
The manipulation fee is fixed to U. If, however, in a particular calendar year i.
This agreement is valid for 10 years starting from the date of the Signature. He had thought that the contract in fact came to an end on 31 Decemberbecause the parties had not provided for a fee for any of the following years.
That was not consistent with the principle that English law will not hesitate to imply a term that any fee or price to be paid is to be a reasonable one, and so it would be for these parties. The examples given above related to situations where the parties had not specified the price or remuneration.
What happens if the contract fails to specify precisely what a party should do, in terms of performance? In the first instance, where a party has promised to perform a particular obligation, and the contract is plainly intended to be legally binding, English law will seek to find substance in the obligation, even if it is described in general terms.
Contract - Wikipedia
All fees and payments for services had been provided for in the contract. Nonetheless, the agreement was found to have been too uncertain by the judge at first instance. The Court of Appeal disagreed, and upheld the agreement. Beyond that, the frequency of flights or the destination of the flights was a matter for the airline.
Best endeavours — an empty promise? Do these clauses have teeth, or are they too uncertain to be enforceable? In addition to all the partners being responsible together, each partner is also liable individually for the entire contract - so a creditor could recover a whole debt from any one of them individually, leaving that person to recover their shares from the rest of the partners.
The exact shares and responsibilities will be set out in a Joint Venture Agreement. Don't forget that England and Scotland have different legal codes, and this may need to be specified.
It can also apply to contracts where a valid limitation clause has been included in the terms. The remedy of rescission putting things back to how they were before the contract began is sometimes available, but where it is not possible or too difficult the court can award damages instead. Non-executive directors have the full powers and authority of any other director and can bind the company to any contract.
It must be capable of being accepted not containing any impossible conditionsmust also be complete not requiring more information to define the offer and not merely advertising.
It can also occur where the parent has less than 50 per cent but can control the board of directors of the subsidiary: In a company a shareholder can appoint a proxy to attend a meeting and vote on their behalf.
Any documents delivered to this address are considered to be legally served on the company. The first is where a party refuses to comply with a contract and this amounts to a breach of contract.
The second is where a contract was made by a minor person under the age of 18 who then repudiates it at or shortly after the age of However, unless carefully written the courts will see them as being a restraint of trade and not enforce them. This is because directors and officers are not always employees and the effect of employment law is different.
This acts as a contract between the shareholders. The company itself is not bound by it, as it is not a party to the agreement. They denote that the document is not an offer or acceptance and negotiations are ongoing. Trademarks must be granted through the Patent Office. Now usually only applied to insurance contracts where the underwriters are those who agree to bear all or part of the risk in return for the premium payments.
Underwriters at Lloyd's of London are also known as names. The legislation mainly protects consumers, but can also apply where there is a business-to-business contract in which one party is significantly more powerful than the other.
A void contract is void from the beginning ab initio - see the Latin terms below and the normal remedy, if possible, is to put things back to where they were before the contract.
Contracts are void where one party lacks the capacity to perform the contracted task, it is based on a mistake, or it is illegal. If the case does go to court no offer or facts stated to be without prejudice can be disclosed as evidence.Curb Your Enthusiasm - Larry wants his girlfriend to sign a sexual contract (Relationship NDA)
It refers to both the agreement and the document that verifies it. It is usually issued by companies and is generally supported by security over some property of the debtor. If the debtor defaults, the creditor can take and sell the property. Debentures are often transferable, so the creditor can sell it and there are markets on formal stock exchanges that deal in types of debenture.
A sure way to lose your case? Challenging contract terms for uncertainty
It is sometimes referred to as debenture stock. A mortgage is a type of debenture but one that is always secured, usually against land. Instead of naming a specific property, which can be taken by the creditor if the debtor defaults as in a fixed charge like a mortgagea class of goods or assets is named, such as the debtor's stock. This allows the debtor to trade in the assets freely, but if the debtor fails to make repayments then the floating charge becomes a fixed charge known as crystallisation over all the stock at that time.
The creditor can then take and sell it to recover the debt. Banks and other creditors often call on directors of small companies to give their personal guarantees for company debts. A guarantee must be in writing. Insurance contracts are contracts of indemnity: A creditor with a secured debt appoints the receiver.
Not all shares can be redeemed, only those stated to be redeemable when they were issued. The payment for the shares must generally come from reserves of profit so that the capital of the company is preserved. Only applied to specific types of transactions eg dealings in land and buildings, shares and ships. A deed must be properly executed and delivered in order to be effective.