Dallas Contract Lawyer Serving Texas

How is a Contract Formed?

A contract is a legally binding agreement that establishes, defines, and governs the mutual rights and obligations of its parties. A contract usually involves the exchange of goods, services, or money or the promise to exchange any of these at a date defined in the contract. A contract is generally signed by both parties. However, not all contracts require a signature.

In order to have a legally valid contract, a contract must be willingly entered into by the parties and formed under proper contract law to be legally binding. This means there must be an offer, consideration for the offer, and acceptance of that offer, and the parties must both have the intent to be legally bound by the terms of the contract.

Offer

An offer, under the terms of the UCC, is when one party promises to do something or refrain from something in exchange for another thing. The law requires that an offer be stated or delivered in a way that a reasonable person would know what to expect upon their acceptance.

Consideration

Consideration is an exchange for a specified action or inaction where something of value was promised. This can take the form of a significant financial or time investment, a promise to perform a service, an agreement not to do something, or reliance on the promise. Consideration is the monetary value that persuades the parties to enter into a contract.

A contract is distinguished from a gift by the presence of consideration. Because there is no consideration for the promise of a gift, failure to follow through on a promise to make a gift is not enforceable as a breach of contract.

Acceptance

Acceptance can be expressed in words, writing, deeds, or performance as long as it is specified in the contract. In general, the acceptance must correspond to the terms of the offer. Otherwise, the acceptance is interpreted as a rejection or counteroffer. If the terms differ even in the slightest from an offer, then this is seen as a counteroffer that may be accepted by the original party to be binding.

Intent to Be Legally Bound

Intent to be legally bound, or mutuality means that the parties came to this agreement through “a meeting of the minds.” A meeting of the minds means that both parties understood and came to an agreement concerning the terms of the contract.

Should there be a dispute regarding a contract, and a party of the contract show that all elements of a legally binding contract exist, then the contract will be valid. To be invalid, the defending party needs to show that one of these elements did not exist.

Types of Employment Contracts in Dallas

Businesses typically require new hires to sign employment contracts outlining the terms of their employment. While nearly all employment contracts help to define the specific details of an employment relationship, employers can offer their employees a variety of contracts. The type of contract offered is determined by the employee’s status, the needs of the organization, and other factors of the business.

Implied Contract

Implied contracts are employment agreements that are neither written nor verbal. In most cases, implied contracts are used when there is no verbal or written contract. There may be an implied contract if an employee and employer do not agree to specific terms through a discussion or by signing a document, but they continue to work for them in some capacity.

Employees can assume that an employer will provide them with the same rights, protections, and benefits that were previously established by an employer’s actions or guidelines under implied contracts. Most implied contracts are for short-term or seasonal types of employment, especially in service-related positions.

Verbal Contract

A verbal contract is an employment agreement that is not in writing. A verbal contract is frequently extended during a discussion about the specifics of an employment relationship. A hiring manager may make a verbal offer to an employee with a set salary, benefits, and other terms.

If the parties verbally agree to these terms, this conversation can serve as a legally binding employment contract, especially if a witness or third party is present to testify that the parties entered into a legally binding contract.

However, because there is usually no accompanying written document that establishes specific terms, verbal contracts can be difficult to enforce, and the parties must rely on memory if a dispute about terms arises.

Written Contract

One of the most common types of employment contracts is a written contract. Written contracts detail the specifics of your employment relationship, such as salary, work schedule/required hours, employment duration, PTO policies, benefits eligibility, and other employment terms.

Written contracts are popular because they can fully and legally document an employment agreement that is signed by both parties, the employer and employee. This means that if any issues arise during the time of employment, the parties can refer back to the contract and clarify any questions or concerns that arise.

How an Employment Contract Lawyer in Dallas Can Help

The most common form of contract is an employment contract. When entering into an employment agreement, both parties expect the other to follow through with their promise. This means that the employee will do the job they were hired to do, and the employee will pay the employer for doing that job.

However, it is not always that simple. Most employment agreements and business agreements have many terms that bind each party to certain obligations. When entering into a contract or if someone has a concern about a possible breach of contract, it is best to speak to an experienced attorney. A contract lawyer in Dallas at the Elaine Law Group understands the complexities around contracts and can advise their clients on the best course of action.

Breach of Contract in Dallas

A breach of contract occurs when one of the agreed-upon terms and conditions of a binding contract is broken or violated by one or both parties of the contract. A breach could range from a late payment or refusal of a paycheck to a more serious violation, such as failing to deliver the entire promised asset or service. A contract breach occurs when one party to a binding agreement fails to deliver on the terms of the agreement.

A breach of contract can occur in both written, implied, and oral contracts. A breach of contract can be resolved among the parties involved or in a court of law. Before going to court, both parties will likely consult a breach of contract lawyer in Dallas if they suspect a breach.

There are two types of contract breaches: minor or material breaches and actual or anticipatory breaches. A minor breach generally happens when a party receives a good or service and the primary purpose of the contract is met. A material breach is when the good or service promised undermines the primary reason for the contract.

The difference between an actual contract breach and an anticipatory contract breach is that with an actual breach, the breach occurred through nonperformance or inadequate performance. An anticipatory contract breach is when a party warns the other that they cannot deliver on the full terms of the contract.

In order to show a breach, there must first be a valid contract between the parties. When suing for breach in court, the court will first review the responsibilities of the parties to see if a fully binding contract was formed. If there was a contract and one of the parties failed to perform, then a breach likely exists.

Remedies for Breach of Contract in Dallas

A contract is legally binding and is enforceable under the law. If a party can show a breach of contract, the remedy is usually to give the victim monetary damages or what they were promised or owed through the full performance of the contract. A breach of contract is not considered a crime, and punitive damages are rarely awarded.

The remedy for a breach is to always put the parties in the position they were in if the contract had been fully performed. Sometimes, if performance cannot occur, then the court will want to put the parties in the position they were in before they entered the contract. The goal is to always make the non-breaching party whole again.

The court will likely order performance, delivery, or payment if it finds a valid breach of a Texas contract.

How a Contract Lawyer in Dallas, TX Can Help

Contracts are not always simple. Most agreements have many terms that bind each party to certain obligations. When these obligations are not met, there could possibly be a breach of contract. When entering into a contract or if someone has a concern about a possible breach of contract, it is best to speak to an experienced attorney. A contract lawyer in Dallas or Harris county at the Elaine Law Group understands the complexities around contracts and contract disputes and can advise their clients on what to do when a breach has occurred.

Elaine Law Group is committed to realizing dreams, building brands, and growing legacies. We are client-focused attorneys committed to assisting creative professionals and entrepreneurs while also building meaningful relationships. If you have any contractual needs, contract review, or questions about contracts, the contract attorneys in Dallas, TX, at Elaine Law Group are here to assist you.

We can be contacted by phone at 214-432-3113, by email at legal@elainelawgroup.com, or by completing our online form under the contact tab. Elaine Law Group seeks to remove the mystery of pursuing ventures, securing brand identity, and creating a legacy. In our decision-making, client interactions, and advice, our people strive to uphold the highest ethical standards.