Contract law is an essential aspect of our legal system, shaping the way agreements and commitments are made and enforced. Whether you’re entering into a business deal or purchasing a product, understanding contract law can protect your rights and ensure fair treatment. In this article, we will explore the fundamental principles of contract law and answer some common questions surrounding this topic.
How to Approach Contract Law
When it comes to contract law, common sense and fairness play a significant role. To evaluate a contract dispute, consider the following questions:
- Was there an agreement?
- What were the commitments made by each party?
- Did either party fail to fulfill their promises?
- If a breach occurred, how can the non-breaching party be compensated?
The objective of resolving contract claims is to restore the parties to the position they would have been in if the contract had not been breached. This principle ensures fairness and protects the interests of all parties involved.
What is a Contract?
A contract is an agreement that holds legal significance and can be enforced by law. It involves the creation of individual rights and duties, which are established through oral or written consent between the involved parties. Additionally, contracts may impose obligations even if the parties are unaware of them.
To gain a comprehensive understanding of contract law, you may refer to Chapter 8 of the New Mexico Uniform Jury Instructions, specifically UJI 13-801 through 13-861.
Exploring Different Types of Contracts
Contracts can take various forms, each with its own characteristics. Let’s examine some common types:
Express Contract
An express contract entails clear communication through language, whether oral or written. For example, if John promises to paint Dan’s car in exchange for $100, their agreement is an express contract.
Implied Contract
In an implied contract, the actions and behavior of the parties indicate their consent to be bound by the agreement. For instance, if Toni fills her car with gas at Tina’s gas station, an implied contract for the purchase and sale of gas exists.
Unilateral Contract
A unilateral contract involves acceptance through performance of a requested act. The terms of the offer must explicitly state that an act is required for acceptance. For example, if John tells Dan that he will pay him $100 for painting his car and Dan accepts by performing the act of painting, a unilateral contract is formed.
Bilateral Contract
In a bilateral contract, acceptance is conveyed through a promise to perform the requested act. For instance, if Red Company offers to buy 100 widgets from Green Company for $100 and Green Company promises to deliver the widgets, a bilateral contract is established.
Who Can Enter into a Contract?
Not everyone possesses the legal capacity to enter into a contract. Minors (individuals under 18 years old) and individuals who are mentally incompetent are considered legally incapable of entering into contracts. In most states, including New Mexico, the legal age for entering into contracts is 18 (refer to NMSA §28-6-1).
However, corporations have the authority to enter into contracts through their agents, officers, and authorized employees. Generally, individuals associated with the corporation are not held personally liable for the corporation’s debts and liabilities, including breaches of contract, with some exceptions.
FAQs
Q: Can a contract between a minor and an adult be canceled?
A: Yes, a contract between a minor and an adult can be canceled at the request of the minor. However, it remains binding on the adult involved.
Q: How is the mental capacity to enter into a contract determined?
A: The test for mental capacity to enter into a contract involves assessing whether the person had the ability to understand the nature and consequences of the agreement.
Conclusion
Having a solid understanding of contract law is vital for navigating the complexities of legal agreements. By knowing your rights and obligations, you can protect yourself and ensure fair treatment in any contractual relationship. Stay informed, seek professional advice when needed, and approach contract negotiations with confidence.