Contracts 101 – Part 1: Outline
Disclaimer: I’m not a lawyer and I have no claim that this advice should be taken as legal advice in replacement of seeking out professional help. What I hope to do is educate you over a series of small posts about what constitutes a contract and you should be able to figure out when you might need to see a real lawyer. Although this series is in the Australian context many of the principles apply in other countries.
In this series I want to cover a basic round-up of the types of legal system in the world and some broad concerns about contracts, particularly when entered into from an international business context, and then I’ll launch into an outline of what constitutes a contract. Where possible I will link to Australian court cases that set precedent in these areas and may elaborate loosely on some general points and principles.
As a small business operator I’ve seen a few contracts cross my desk and as a rule I don’t sign them. I’m aware there is a trend in our industry to author our own contracts but really when you think that none of us are lawyers and we don’t know what we’re talking about then these contracts are often worth less than the paper they’re printed on. What legal system will apply? What constitutes a legally binding contract? Which parts can be enforced? Its no use simply signing documents that have magic qualities – its your job to understand them.
My point is that a bad contract is just like spitting on your hand. There are some things that, regardless of a signature, won’t be enforced in a courtroom. Similarly, there are things that might be implicit without being written. And if you’re in business you need to be able to tell as much and to know when to see a lawyer for more advice. Contracts are the life-blood of what we’re about – so why don’t we know more about them?
Up until now we’ve treated them as magic legal black boxes… and this series will hopefully rectify some of those misconceptions. Stay tuned… and if something is wrong feel free to contact me and I’ll gladly research and assess any need for change in the articles. The aim is to create a solid resource you can steer people toward in the future.
Resources for this Series
The bulk of this information is obtained through Australian Business Law 26th edition by Paul Lattimer, Managers and the Law: A guide for Business Decision Makers by Lynden Griggs, Eugene Clark and Ian Iredale, A Guide to Business Law thirteenth edition by John Carvan, John Gooley and Evelyn McRae, Law in Commerce third edition by Brendan Sweeney and Jennifer O’Reillly, as well as through the MBA unit BFA682 Law for Managers taught at the University of Tasmania by Simone Watson in 2009. These resources are highly recommended for improving your understanding about these issues. Many case files hyperlinked within this series are directly accessed via the Austlii database (Australia) and the BAILLI database (United Kingdom).
Installments in Contracts 101
- Contracts 101 – Part 1: Outline
- Contracts 101 – Part 2: Which Contract?
- Contracts 101 – Part 3: The Six Elements
- Contracts 101 – Part 4: The Agreement
- Contracts 101 – Part 5: The Offer
- Contracts 101 – Part 6: The Acceptance
- Contracts 101 – Part 7: Battle of the Forms
- Contracts 101 – Part 8: Consideration
- Contracts 101 – Part 9: Capacity
- Contracts 101 – Part 10: Legality of Object
- Contracts 101 – Part 11: Possibility of Performance
- Contracts 101 – Part 12: Genuine Consent
- Contracts 101 – Part 13: Promissory Estoppel
- Contracts 101 – Part 14: Ending the Contract
- Contracts 101 – Conclusion: Protect your Business
