Contracts
Contracts are a form of formal agreement between two or more parties to compete a service, provide goods or meet an obligation. They can be a mine field and without the correct advice can create legal and financial stress.
BlueKey Lawyers can assist you with:
- Drafting Contracts
- Reviewing Contract
- Negotiation of Contract
- Contract Disputes
- Renewing Contracts
Contracts can come in many forms and in some cases don’t have to be seen for you to enter into. For example; if you have ever driven into a car park and noticed a board with terms of entry and entered without reading anyway, then congratulations you have entered into a contract.
“Before entering into any contract, it is always recommended to seek legal advice.”
Contracts can take the following forms:
- Written Contract
- Verbal Contract
- Standard Form contract
- Period Contracts
Written Contracts
Written contracts are usually the most common form of contract as they are versatile, detailed and most importantly much easier to enforce. Other benefits include:
- Provide proof of what was agreed between you and the other party
- Help to prevent misunderstandings or disputes by making the agreement clear from the outset.
- Gives you security knowing that what is laid out in the contract is binding.
- Reduce the risk of a dispute by detailing payments, timeframes and work to be performed under the contract.
- Set out how a dispute over payments or performance will be resolved.
- Set out how the contract can be varied.
- Serve as a record of what was agreed.
- Specify how either party can end the contract before the work or term is completed.
A written contract will always be the recommended form of contract. They are generally always required by insurers, financial institutions and other third parties who are taking a risk on the service or exchange of goods that are laid out in the contract.
Verbal Contracts
Verbal contracts are often used however, should legal action be required due to a dispute, they are much more difficult to prove. Some contracts can often be partially verbal or promissory meaning that addition agreements have been made outside of the written agreement.
Obtaining proof of a verbal contract is essential and can come in the form of:
- Emails detailing the terms of the agreement
- Quotes the specify item which fall within the agreement
- Notes relating to the discussion
Standard form contracts
As standard form contract is a pre-prepared contract which outlines terms in advance and little to no terms are negotiated. You will see examples of this being used for property transactions. However, just because many of the terms are prepared prior to the agreement doesn’t mean they cannot be altered or negotiated pre-signing.
With negotiation or altering terms, both parties will still need to agree before the contract proceeds. To remove terms, all the is need is for the term to be crossed out and initialled by both parties. To add a term, you will be required to place this in a special condition section or annexure.
Just because the contract is a standard form contract and is commonly used doesn’t mean that legal advice should not be obtained. There are many terms within a standard form contract that could create legal and financial concerns if they are not adhered to.