Example of a Common Law Contract

When it comes to legal agreements, common law contracts are some of the most common types of contracts in use today. These agreements are often used in business transactions and can cover a wide range of topics and conditions. In this article, we will explore what a common law contract is and provide an example of one.

What Is a Common Law Contract?

A common law contract is a legally binding agreement between two parties that is formed through the mutual assent of both parties. This type of contract is created through common law principles, which are derived from legal precedents established by courts over time. Common law contracts are also known as “unwritten contracts” because they are not required to be written down to be legally binding.

While common law contracts can be oral, it is always best to have them in writing to provide a clear record of the terms of the agreement. These contracts are typically used in business transactions, such as the sale of goods or services.

Example of a Common Law Contract

To better understand how a common law contract works, let`s look at an example. John runs a small landscaping business and has been hired by Jane to plant new shrubs and flowers in her yard. They agree on the price, timeline, and scope of the project and shake hands to seal the deal.

While this agreement was not put into writing, it is still a legally binding contract under common law principles. If either party breaches the terms of the agreement, the other party has legal recourse to seek damages.

In this example, the terms of the agreement may be vague or unclear, making it difficult for either party to enforce their rights. It is always best to have a written contract that outlines the terms of the agreement in detail to avoid any confusion or misunderstandings.

Conclusion

Common law contracts are a fundamental aspect of the legal system and are used in many business transactions. These contracts are legally binding and can be enforced through legal action if necessary. It is always best to have a written contract that outlines the terms of the agreement in detail to avoid any confusion or misunderstandings, even if the contract is not required to be written down to be legally binding.