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What is contract law? Everything you should know!
07 December, 2018
We live in a world where contracts are made for everything. Since the contracts became mainstream and people started to abuse them in one way or another, the government came forward to set up some rules and guidelines which we nowadays know as Contract Law. But what is Contract Law, something that every other person who is the field of venture or studies business ethics seems to have this in their mind?
And so, we will discuss the depth and commencement of Contract Law, and we will try to create a better understanding of how contract law works and why they are so important to us. Let us start with something that is basics which will offer a great understanding for us on the topic of contract Law and its aspects.
What is Contract Law?
As we know a contract is a legal document which binds the parties that are involved in the contract which are backed up by some legal aspects. These legal regulations are laid down by the government of every country as for India; we have these set of rules and provisions named as Indian Contract Law and which is further known as Indian contract Act. These acts are the base of the Contracts that we come under and help the people to have a much clear and better relationship.
To narrow down this whole concept for better understanding we can say that a contract is something that legally enforces an agreement between two or more parties where each of the entities is bound under rules and regulations, and they are supposed to follow these legal obligations.
Terms related to Contract Law
There are several terms that you should be familiar to work your way towards understanding ‘What is contract law'. So, the following are some of the terms that we should learn are as follows:
- Contract: Something that is too obvious to be understood. The contract is the core of Contract Law and its existence. Without some knowledge of contract in mind of the respective parties; contract Law would not come into play. A Contract is an agreement of terms between two or more than two parties. The contract creates a specific duty for each that they would be following to fulfil the contract.
- Performance: By the term Performance in contract law it signifies about the task that is given to the individual which they have discussed while framing and signing the contract. This performance can be both something which makes or stops an individual from doing a specific task
- For example: suppose exhibit A have come into contact with Mr. X that he will only endorse the company that Mr. X owns. This means the first obligation verifies that A will be doing the marketing and endorsement work for Mr. X's company and the secondary objective of this contract will be that exhibit A will be barred from entering into any other business enterprises in the same jurisdiction as well.
- Breach: Breach is the term given to any act which results in the dissolution of a contract. It is that state of affairs where one or more parties in a contract breach against the rules and provisions laid down while making the contract. Breach is treated as a serious offence in the Contract Law and without understanding Breach and its existence, answering the question of ‘what is contract Law' is not possible. To put the concept of the breach in simple terms, it is explained as something that causes a failure to any performance of an obligation for which one or more parties have agreed upon. It is later on treated by the Jurisdiction in case someone has not informed others about this certain backing out.
Advantages of Contract Law
As we can see, Contract Law is a package of various kinds of rules and regulations that make up to form a better understanding between the parties that are involved in the events, it also helps them to build a peaceful and harmonious relationship. These are some of the advantages that come with the existence of Contract Law:
- The sense of security: One of the biggest advantages of contract Law is that it offers a sense of security and peace of mind for all those who participate in the contract. This is because of the simple fact that once a proposal becomes a contract and comes under the jurisdiction of Contract Law, it becomes something that is now legal and Law is enforced on every step of it. So, there is least amount of risk involved in all of this which gives the participants a sense of sanity and satisfaction too.
- Confidentiality: When a contract is signed, one of the most basic things that it covers and which is important to the people in the contract's range of interaction is that it provides confidentiality. It is advised to anyone who is entering into a contract that they should realize these benefits. Confidentiality plays a great role in the proper working of a contract as it offers incognito features to all those who are a part of it. Anyone who breaks this aspects and leaks out the name or the information about the participants are supposed to get punishment by the jurisdiction and Contract Law if there is a clause that barred the people about not disclosing the above-mentioned things.
- Settlement of Disputes: Something that is at the epitome of advantages and holds the topmost position as being the best part of the contract Law is that it serves as a tool that helps the people participating in to solve the disputes in an easy and simple manner without any major issues or violence. Contract law empowers all the individuals in a contract that they can file a suit against anyone inside or outside the contract who is a prospective individual that might be causing problems for the contract. There are many provisions and rules regarding these issues which make sure of the fact that all the individuals shall receive the justice and right that they deserve out of their dedication towards the contract which may have taken a hit by breach of a partner or unlawful action of an outside entity.
- Protects both the clients and Individuals: As the contract Law serves as a tool of dispute settlement, it also is helpful for protecting both you, other partners and society from any harm either in terms of physical, verbal, social or economic abuse.
The fact that the contract law offers a great platform and way where individuals can involve with each other knowing that they can back up their actions with legal rights and help for the judiciary is remarkable.
So, this was all that it is to the topic of ‘what is Contract Law'. There are several concepts in the books that are given by experts on the topic of Contract law about it being the guardian over trade and business relations. This is more of a nutshell that covers everything that is in contract law at least on a basic level.
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