Contracts:

Contract law is essential to commerce and trade. Contracts are legally binding agreements which establish the rights and duties to parties to an agreement.  They require certain elements for formation being offer, agreement and consideration-that is something of value in which the contract concerns.  Contracts are entered into for a myriad of reasons such as employment, suppliers, distributors, rent/lease, purchase of assets, licensing or a franchise agreements.  However contracts may contain clauses they may cause you to incur a debt or liability. Consultation with a Debt Recovery and Insurance Lawyer may be greatly beneficial if you are subject to liability or debt due to a contractual arrangement.

Many contracts contain clauses that may render your liable for a debt or liability. These include delay clauses, indemnity agreements and guarantee clauses. A delay clause usually requires the party causing the delay to notify the other party, generally in writing, containing details of the cause of delay and new completion date. Sometimes a delay will constitute a breach of contract, at other times it gives rise to damages or a penalty. Obtaining proper legal advice from a Debt Recovery and Insurance Lawyer may be greatly beneficial if you are implicated by liability or debt from a contract.

A guarantee is an agreement in which the guarantor agrees to guarantee the payment of monies and the observance and performance of another party’s obligations as specified in a contract. A guarantee can extend to claims for damages for breaches of any covenants, provision or term of a contract; for repudiation of contract; for the guarantee’s damage or loss on the occurrence of certain events and for the guarantee’s reasonable legal and other expenses of seeking to enforce those obligations against the party and the guarantor.

An indemnity agreement is an agreement for one party to provide compensation for loss or damage from the actions of another party. Indemnity is defined as "a duty to make good any loss, damage, or liability incurred by another. Indemnity has the general meaning of "hold harmless", that is, one party holds the other harmless for some loss or damage. An indemnity agreement (sometimes called a "hold harmless agreement" can be a contract or a section of a contract. An example is a businesses that offer somewhat dangerous activities to the public,  such as base jumping or white water rafting, which requires that the members of the public sign an indemnity agreement releasing the business from liability in case of an accident. In reality, if the business is found to be negligent the individual who was injured still has a cause of action against the company. Sound legal advice from a skilled Debt Recovery and Insurance Lawyer may be advantageous to ensure that any contractual liability is properly understood.

Consultation with an experienced Commercial Lawyer can assist you in ensuring that you draft a contract which is complete, thorough, clear and accurately states the rights, duties and obligations of each party. In particular, advice may be sought if a debt or liability arises from a contract that needs to be addressed, challenged or enforced.

If you need further legal advice on your debt related matter, you may book an appointment with us by telephone on (02) 9233 4048 or by email to info@navado.com.au.

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.