Contract Law


Ealing contract law advice

Contract law is extremely important to the modern commercial world.  It provides certainty in business relationships between business partners, merchants, employers and employees, and provides legal remedies where ‘promises’ are broken.

We provide a wide-range of advice related to this very broad area of the law.  We commonly advise clients regarding:

  • Proper drafting of contracts in general
  • Drafting of terms and conditions for the sale of goods and provision of services
  • Employment contracts
  • Breach of contract remedies
  • Contractual disputes
  • Warranties and guarantees
  • Indemnity clauses

What is required for a legally valid contract?

The starting point for any examination of a contractual is asking whether a legally valid contract exists in the first place.  Broadly speaking, for a valid contract there has to be:

  • An offer
  • Acceptance of that offer
  • Consideration – a fancy word for some sort of payment.  In a commercial context, this usually means a payment of money, although other things can be classed as consideration.

Whilst each of these terms seem simple on the face of it, they have been extensively developed by case law over many decades.  If you are ensure whether you are dealing with a valid contract or not, it is absolutely vital to get a solicitor to have a look at it.

Indemnity clauses

Indemnity clauses are used to cover for breaches of contract; one party will agree to pay the other a certain some of money if the contract is breached.  Naturally, they are a very common feature of the legal landscape as they aid in the settling of disputes outside of court, but they are often misunderstood.  An indemnity clause cannot ‘punish’ the person in breach.  Any payments they make have to be a ‘genuine pre-estimate of loss’.  Usually this will mean a single clause will not be relevant to every type of breach.  If an indemnity clause is not considered a ‘genuine pre-estimate of loss’ it will be considered a ‘penalty clause’ which is legally invalid.

Get in touch

The term ‘legal minefield’ is certainly a cliché, but we make no apologies in describing contract law as that.  To make sure you don’t take the wrong step and to receive sensible and practical advice, get in touch with our contract law specialists to find out what we can do to help.

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