Consideration: An Essential Element in a Valid Contract
March 1, 2019No contract is valid without the inclusion of consideration, which is an exchange of items of value between the two contracting parties. Considerations may consist of money, services, stock, promissory notes, intellectual property, or other tangible items of value. There are no limits on these exchanges unless they…
DetailsAre Limitation of Liability Clauses Enforceable?
February 25, 2019A limitation of liability clause in a contract reduce exposure by limiting the amount or type of damages for which the breaching defendant is responsible. For example, a limitation of liability clause may limit a company’s liability to: Only the compensation/fees paid under the contract Damages other than, say, l…
DetailsWhen Does a Contract Violate Public Policy?
February 19, 2019A contract that is contrary to public policy is not enforceable, but what exactly is public policy and how are violations determined? Public policy is a system of laws, regulations, court decisions, and societal norms that citizens are expected to follow. Since public policy changes over time, the application of pu…
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