Nashville, TN – Businesses engage in various kinds of deals that may be formalized in written or verbal agreements, although this is not always the case. In some cases, a court may recognize a history of dealings between two parties as an implied contract. If any business needs additional advice about contract law and implied contracts, it is best to get more specific advice from attorneys near me in Nashville.
Written versus implied contracts
Ideally, all transactions would come with some kind of formal written document that outlines the terms of the deal and the document would be signed by all of the relevant parties. This makes it much easier to discern the exact terms of the agreement in the event of a dispute. However, this does not always happen and sometimes agreements need to be implied through things like industry custom, previous dealings, and oral conversations. When parties engage in certain practices regularly, this can give rise to an implied contract for the transaction.
When does an implied contract become binding?
In the event of a dispute, a court who is analyzing the situation can try to determine whether the behavior of the parties indicate any practices that could be considered an implied agreement. This almost always needs to include some kind of exchange of goods or services for payment. There also can be a prior written agreement that outlines the relationship between the parties that is used as evidence. However, state laws can vary regarding what types of deals absolutely need to be in writing. For example, a very large and valuable transaction should almost always be formalized into a written contract if either party expects the transaction to be enforced.
Remedies for breach of implied contract
An implied contract can be enforced much in the same way that any written document can in the event of a breach. This includes monetary damages being awarded to the non breaching party, or specific performance of the terms if compensation is not a proper remedy. Damages that are awarded to the non-breaching party normally include foreseeable losses such as profits or transaction costs that were reasonably related to the breach. Equitable remedies are sometimes given by courts when money would be insufficient or not related to the specific terms of the deal.
Additional business law information
The Law Office of George R. Fusner handles various business matters in Nashville and nearby parts of Tennessee. Those who want advice regarding any business law disputes can schedule a meeting with their lawyers.
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Firm contact info:
7104 Peach Court, Brentwood TN 37027
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