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What is a constructive agreement in a business setting in Nashville?

Nashville, TN – While it is always preferred to have a written document that covers the terms of any deal, it is possible that businesses can have agreements created or implied in other ways. A constructive agreement is essentially a type of agreement that is created by courts to prevent certain unfair outcomes. However, constructive agreements or contracts are generally not available if there is an existing contract that covers the same transaction. Business attorneys should be consulted by any person or company who is having issues with constructive or implied agreements. Here is a brief overview of constructive agreements and why they exist in business law. 

Unjust enrichment

A constructive agreement can be created when one party is receiving an unfair benefit at another’s expense, known as unjust enrichment. This is an equitable principle related to creating a constructive contract that can sometimes be used by courts to reach a more balanced and fair outcome. This commonly happens in situations where services or work is not performed even if the parties intended to do so, as courts would not force a party to an agreement to pay for services that were not rendered. There have also been examples where a party was paid by mistake, but the courts would expect the paying party to receive their money back as another way to prevent unjust enrichment. These duties of good faith and fair dealing can be extended to more serious situations involving criminal acts or fraud

Preventing situations that can result in constructive agreements or unjust enrichment

It is helpful for a business to avoid these kinds of problems by having a law firm available to review all agreements and transactions when necessary. As a precaution, contracts should be drafted to cover various relationships and deals. If the subject matter of a transaction is for transactions involving land or real estate, or there are large amounts of money at issue, these documents should always be formalized in writing. If there is a dispute related to any agreement, this can result in additional costs through legal fees and paying for the damages related to breaching a contract. The damages in a breach of contract lawsuit tend to reflect the specific losses sustained by either party, as well as any foreseeable lost profits. 

Business lawyers in Nashville

The Law Office of George R. Fusner is a business law practice in Nashville, Tennessee. Anyone who has questions about the matters discussed in this article can schedule a meeting with their attorneys.

USAttorneys.com is a web directory of lawyers in every jurisdiction in the country. People who are searching for the right attorney can call 800-672-3103 for a referral.

Firm contact info:

The Law Office of George R. Fusner

7104 Peach Court, Brentwood TN 37027

615-251-0005

gfusnerlaw.com

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