Contract Law

Posted October 20th, 2012 by admin and filed in Uncategorized

Contract law is crucial to how businesses and consumers interact. It ought to be a simple subject but it has been said to be the most challenging subject in the first year of law school. Contract law pertains to all aspects of the making, keeping and breaking promises and agreements. It covers various agreements regardless of who made them or their subject matter.

The focus of contract law is on the future. If someone fails to uphold their part of the agreement in the future, they have broken the contract and must pay the appropriate consequences. Society functions through a variety of agreements and contracts to carry out its transactions. Contract law ensures society will function accordingly. Economic theory states everyone benefits from a contract-based market system because people get what they want and the resources are used most effectively.

General contract law serves as an umbrella to more specialized contract law such as labor law and partnership law. For example, labor law handles collective bargaining agreements between a company and its labor force. Partnership law deals with the agreement between a company’s partners. When a contract or agreement is beyond the scope of a more specialized law field, contract law steps in and covers these disputes. Businesses and consumers alike consult contract lawyers to plan and develop their contracts as well as to resolve any contract disputes.

The purpose of contract law is to resolve disputes which arise from an incomplete transaction. Additionally, it outlines society’s values of freedom and autonomy to make choices in a market economy and democratic society. Contract law denotes security into society’s transactions.

 

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