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Contracts – A Plain English Primer…

Preface

This book is the first in a series of Know What Your Lawyer Knows™ books designed to help business owners and executives gain a deeper understanding of how to use the law to their advantage and improve their business.  In addition, the goal of this book and the entire series is to help business owners and executives better manage the bottom line by reducing the serious drain legal fees impose on their business.

These books are intended and designed to inform and empower business owners and executives in their dealings with their lawyers as well as other key stakeholders.  In the end, we believe that a healthy dose of training in how lawyers think and operate will help business owners and executives become smarter consumers of legal services and more effective in business and in life.

In our mission and quest to deliver truly practical and useful legal information and training to business owners and executives, we offer this legal information book. The law is a business tool that business owners and executives can use to manage risks and grow profits.

 

Table of Contents

The First Day of Law School – Contracts 101 –  The Case of the Hairy Hand . . . . Page 8
Making the Agreement Binding and Enforceable . . . . . . . . . . . . . Page 15
Formation of an Enforceable Agreement . . . . . . . . . . . . . . . . . . Page 16
Legal Consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 19
Contract as Trial Exhibit – Consideration . . . . . . . . . . . . . . . . . . Page 20
Understanding Frequently Used Contract Language . . . . . . . . . .. Page 21
Clear Identification of the Contracting Parties . . . . . . . . . . . . . . . Page 21
The Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 23
Clear Statement of the Scope of Work (with defined milestone and terms) . . . . . Page 24
Best to Spell it Out – Acceptance . . . . . . . . . . . . . . . . . . . . . . . Page 25
Clear Billing and Payment Terms . . . . . . . . . . . . . . . . . . . . . . . . Page 26
Independent Contractor Status . . . . . . . . . . . . . . . . . . . . . . . . . Page 27
Non-Competition & Non-Solicitation . . . . . . . . . . . . . . . . . . . . . Page 28
The Integration Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 29
What if Parts of the Contract are Found to be Invalid and Not Enforceable . . . . . Page 30
Assignment / Non-Assignment . . . . . . . . . . . . . . . . . . . . . . . . . Page 31
No Waivers, Written Amendments and Modifications . . . . . . . . . . Page 33
Ownership of Intellectual Property . . . . . . . . . . . . . . . . . . . . . . Page 34
Choice of Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 35
Where You Gonna Sue?  The Venue Selection Clause  . . . . . . . . Page 36
Indemnification Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 38
Limitation of Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 39
Express Warranties and the Warranty Disclaimer Provision . . . . . Page 40
Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 42
Attorney Fee Provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 43
A Few Words about SHALL, WILL and MAY . . . . . . . . . . . . . . . . Page 44
An Important Rule of Contract Interpretation . . . . . . . . . . . . . . . Page 45
The Implied Covenant of Good Faith and Fair Dealing . . . . . . . . . Page 46
About the Author  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 47

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