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Personal Guarantees: What You Need to Know Before You Sign
(0) Personal Guarantees: What You Need to Know Before You Sign
If you're looking for a credit facility for your business, be prepared to give a personal guarantee. There is almost no lender today that does not require personal guarantees from the principals of the business as security, especially from small to medium-sized businesses. Know the risks before you sign.
What You Should Know About the Legalities of Augmented Reality
(0) What You Should Know About the Legalities of Augmented Reality

The release of Pokemon Go has opened a Pandora's box of concerns for property owners, lawyers and lawmakers. This is a brief overview of potential legal issues arising from the new and developing area of augmented reality apps.

Is It Legal Advice or Isn't It? Staying on the Right Side of the Fine Line
(0) Is It Legal Advice or Isn't It? Staying on the Right Side of the Fine Line

Our customer support team regularly fields questions from our customers about legal matters. While we do backgrounds as legal assistants, we're not lawyers and cannot practice law or give legal advice. But on an almost daily basis, customers ask us for answers or opinions which may or may not fall under the definition of legal advice. So what can we do? And how do we know whether it is or it isn't?

How important is online reputation management to your business?
(0) How important is online reputation management to your business?

No matter whether you have brick and mortar locations or whether you are strictly an online merchant, your business depends on its online profile to generate leads and sales. Product and site reviews and social media comments are critical to your success. With that in mind, you'll need to become acutely aware of what people are saying about you online. While you can't control what is said, you can take action to mitigate damages caused by bad reviews or comments, managing your reputation in the process.

How is a Deed of Trust Different from a Mortgage?
(0) How is a Deed of Trust Different from a Mortgage?

A deed of trust might make it easier for you to get a loan to purchase your new home than trying to get a traditional mortgage from a bank. That's because you're basically giving over the deed to the property to the lender as security for the loan. But not all states allow the use of deeds of trust.

Traveling with a Child? Make Sure You Have a Consent Form With You.
(0) Traveling with a Child? Make Sure You Have a Consent Form With You.

A parental consent letter, stating that the adult in charge has the parent's or guardian's permission to travel with the child and authorizing him/her to make decisions on behalf of that child, is now essential - especially if traveling out of the child's country of residence. It should be signed by every person who has custodial rights over the child.

Can I Get Sued if a Contractor Gets Hurt While Working on My Property?
(0) Can I Get Sued if a Contractor Gets Hurt While Working on My Property?

It's a nightmare to think about - a roofing contractor working on your house slips and falls off your roof, resulting in serious injuries. You have many sleepless nights wondering if he's going to sue you. What can you do to protect against such risks?

Don't Let Clients Do an End Run Around You
(0) Don't Let Clients Do an End Run Around You
Every non-disclosure agreement should include a non-circumvention clause to prohibit the person from directly contacting its customers, employees and business contacts.
What is the Difference Between an Accident and an Incident?
(0) What is the Difference Between an Accident and an Incident?

In occupational health and safety lingo, the terms "accident" and "incident" may appear to be interchangeable - but they're not. An incident is any situation that unexpectedly arises in the workplace which has the potential to cause injury, damage or harm. An accident is actually an incident that resulted in someone being injured or damage being done to property.

Is An Oral Contract Enforceable?
(0) Is An Oral Contract Enforceable?

Samuel Goldwyn once said, "An oral contract isn't worth the paper it's written on."

Sam had a point - it's often very hard to establish with 100% accuracy whether a contract actually exists, let alone what the terms of the contract are, with no written point of reference. And if you can't prove you have a contract, how can you enforce it?

How do you prove an oral contract exists?

If both parties admit, firstly, that there is a contractual relationship between them and secondly, what the terms are that were agreed upon, then an oral (or verbal) contract can be established and enforced to the extent that those terms can be verified. This of course presupposes that the parties are giving accurate and truthful representations about the agreed-upon terms.

If there were any other persons who were present at the time the contract was struck (such as employees or family members), those persons can act as witnesses to verify the existence of the relationship. Even if there is no signed contract between the parties, there is very often other documentation to support the existence of the contract, such as correspondence (letters or emails), notes, supplementary agreements or even draft contracts which were never signed.

The course of conduct between the parties can also help to establish that there is a contractual agreement. If the parties have acted in a certain manner which supports the assertion of a contract (for example, services were provided by one party to the other in exchange for payment), that is also evidence that a contract exists.

If I can prove the oral contract exists, is it now fully enforceable?

To be legally enforceable any agreement (whether oral or written) must meet certain requirements.

  • It must contain essential contractual terms.
  • Those terms must be sufficiently certain to allow for enforcement.
  • No essential terms may be left on the table for future agreement.

Different countries approach the subject differently. For instance, in Canada a verbal contract is enforceable if you can prove the existence of a contract and its terms. Every contract in Canada, whether written or oral, must include an offer from one party and acceptance of the offer by the other party, and consideration (payment or exchange of something valuable).

Under U.S. law, an oral contract is enforceable unless its subject matter falls within the statute of frauds, which requires certain contracts to be in writing. The Uniform Commercial Code governs the enforceability of oral contracts in any purchase and sale agreement involving a commercial merchant.

British law allows for binding and legally enforceable oral contracts, except in certain circumstances. In all 3 countries, a written agreement is required in transactions involving real estate, personal guarantees, and (with some exceptions) transfers of securities.

Whether or not the law requires it, it is always advisable to put your terms of agreement in writing.

A written contract provides clarity, confirms that the parties have the same understanding of the relationship, establishes the rights and obligations of the parties, and provides protection and security in the event of a default or dispute.

It can also reduce the potential for legal claims, because it provides a clear reference point as to how the parties have agreed to act and cooperate throughout the performance of the contract and reduces the potential for misunderstanding and miscommunication.

Image by Andreas Volz from Pixabay