What is a Legal Contract?
An agreement made between two or more parties that is legally enforceable is known as a legal contract. Whether a contract is in writing or verbally agreed upon, the result is typically a specified benefit based on promises made by one or both parties to the other.
What Requirements Must be Met to Make a Contract Legally Binding?
1. To be enforceable, the contract must have a lawful purpose with no intention of doing something deemed "illegal".
2. One or both sides must make and accept an offer of promise and fulfillment.
3. Something of value for benefit must be agreed upon in exchange by each party.
4. There must be a mutual agreement met.
5. All parties must be of legal age, sound mind, and not under the influence of alcohol or drugs.
6. All parties must have entered the contract of their own free will.
When does a Breach of Contract Occur?
Once an offer has been made and accepted, it is the duty of the party or parties to hold their end of their contractual obligation. If these promises are not kept or the benefit is not given, a breach of contract has occurred, and the party harmed is able to seek options for legal action.
Different Types of Legal Contracts
Bilateral Contract: Bilateral Contracts involve more than one party. Example - If you just purchased a home and hired a contractor to make some repairs on your new property, the contractor promises to provide specific services, and you promise to pay them a sum of money in return. If you pay the contractor in advance and they do a poor job that didn't line up with your agreement, or didn't do the job at all, the contractor is in breach of your contract. If they do provide services and you don't pay them the agreed upon amount, you are the one at fault and could have legal action taken against you. Unilateral Contract: In Unilateral Contracts, one party makes a promise in exchange for a future act promised by another party. One example of this is if you purchase homeowner's insurance - You pay for the insurance and if in the future an event occurs against your insured property, such as theft or an act of nature, the insurance company promises to pay for the loss or damages. Let's say you've been paying your homeowner's insurance dues on time, and a pipe bursts in your home causing flooding. Once repairs have been made and damage assessed, you are likely to reach out to your insurance company. Unfortunately, you purchased the cheapest insurance you could find because you needed it "now" when you moved into your new home, and the company now refuses to pay for the financial loss - they are now in breach of contract.
What Can I Do If I am the Victim of a Breach of Contract?
Do your research and contact a reputable attorney to assist you. If you feel you are a victim of a breach of contract in Nevada, you can schedule a complimentary consultation with Joe Dragon to discuss potential legal options.
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