May 1, 2013
Whether it is for drafting or reviewing an agreement they wish to reduce down to writing or whether it is enforcing and protecting their rights in a contract that already exists, our clients routinely ask us questions about contracts. In some cases, clients do not even realize that their questions relate to contracts.
Contracts affect so many different areas of law and are fundamental fixtures in our society. Contracts are the building blocks and framework for virtually all fields of law. For example, businesses are built and managed using both simple and complex contracts. The operating agreement of a limited liability company (LLC) or the bylaws of a corporation are contracts between the members or shareholders about how the company will run, and in the case of an LLC, what the individual members’ roles and contributions will be.
Other common business contracts include employee agreements, vendor agreements, service agreements, client or patient contracts, commercial leases, warranties and any other business arrangement. Intellectual property licenses, assignments, sub-licenses, and partnerships, as well as collaboration agreements for patents, trademarks, copyrights, or trade secrets, are all contracts between two or more parties. Attorneys who work in a particular field of law may have an understanding of that particular practice area (i.e. intellectual property), but that specific knowledge must work in conjunction with and have its foundation in an advanced understanding of contract law generally.
No matter what you call these agreements, at the end of the day, they are all simply contracts. Contracts are not only found in the business world. For example, they can play a crucial role in estate planning as well. Spouses may wish to have their wills or trust instruments treated as a contract between them, so that spouse cannot change the terms when the other spouse passes away. In addition, health insurance and other payable on death accounts, such as certificates of deposits, are based in contracts between the individual and the health insurance company or banks. Contracts find themselves in all types of situations. The number of contracts we encounter daily and the way these contracts impact us could span forever, but here are some additional examples that you may see or be affected by every so often or even every day, a list in which could go on forever:
Contracts are essential parts of our everyday life and affect us in ways we may not even realize. It is important that you have an understanding of how they work, so that you know when your rights are being violated or when you may need an attorney who is experienced in dealing with contracts to enforce or protect your legal rights.