- Understand what a contract is
- Understand the four parts of a contract
- Understand when a contract is breached and what you can do about it
- Understand warranties
Contracts
A contract is an agreement that between parties that contains details about the performance of a specified action. The contract creates a legal obligation and can be enforced in a court of law. Contracts are an important part of doing business. Some of the business transactions that involve contracts are buying materials and real estate, selling goods, leasing equipment, hiring consultants, and renting office space.
express vs. implied contract
- An express contract is formed with specific written or spoken words.
- An implied contract is formed as a result of the actions of the parties that show agreement.
An example of an express contract is the written sales contract that you sign when you go to a car dealership to buy a car. An implied contract exists when you go to the supermarket to buy groceries. You and the supermarket have an implied contract that you will pay the displayed prices for the goods that you take from the shelves.