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30/6/2022 0 Comments What Is a Contract Assignment? By The Law Office of Yoel Molina.
A contract assignment is when one party to a contract takes on the rights and/or obligations of another party to the same contract. For example, let’s say Sally creates a logo for Sarah’s business. The contract between the states that Sarah owns all rights to the logo design and can use it in any way she wishes, and she pays Sally $1,000. Then, for some reason (financial distress, perhaps), Sarah can no longer fulfill her obligations under the contract. She doesn’t want to give up the $1,000 she’s already earned, nor does she want to continue doing work for nothing. Instead, she finds a new client—Carl—and contracts with him to create a logo, agreeing to perform the same work that she did for Sarah. As it turns out, Carl is very happy with the work and pays Sarah $2,000. Where does that $1,000 go? How do Assignments work? An assignment of a contract gives the assignee the right to sue if the contract is breached. If the contract is assignable, the parties are free to agree to that; if not, the courts will determine if the contract is so integral to the performance of the service or goods that enforcement would be unreasonable. For example, if a contractor never shows up to do renovations to a home, and then attempts to transfer the contract to another customer, the homeowner can sue and have the contractor fulfill his obligation to complete the work. However, if there\'s a sufficient period between when the contractor gives notice of cancellation and when he hopes to transfer the contract, the court may determine that it is reachable for another customer and deny enforcement of the original contract. An assignment can occur before or after the performance. When an assignment occurs before the performance, it is conditional on satisfaction with how the assignee performs. When Assignments Will Not Be Enforced? An agreement to assign a contract is likely to be enforced, regardless of the circumstances. Once the contract is assigned, the ability to object to any subsequent party to the contract (except certain types of successors, described above) is largely forfeited. As a result, parties are reluctant to create contracts that cannot be assigned. Reminder: A Contract Can Be Assigned or Purchased by a Vendor The ability of a party to a contract (the contracting party) to transfer or sell their rights and obligations under that contract to another party is known as the ability to collateralize or assign that contract. When a contracting party can do so, the contract is said to be collateralized or assignable. Conversely, when a contracting party cannot transfer or sell their rights and obligations under the contract, the contract is said to be non-assignable or voidable when such assignment takes place without the consent of the other party. Delegation or Assignment? If both parties are businesses, generally a contract may be assigned without restriction. However, if the contract involves an opportunity for one of the parties to obtain or sell a business, the rights and obligations under the contract may need to be effectively conveyed in such a transaction. For example, if Larry the Cable Guy contracts with a beverage company to market his brand and later sells his company to another party, the ability to effectively transfer that contract is important. Although both forms of delegation--by the party contracting with Larry the Cable Guy and by Larry the Cable Guy himself--could technically fulfill the duties of their respective contracts, an assignment allows for a more flexible arrangement. An assignment allows the original contracting party to assign its duties to someone else, while still being able to hold the new party accountable for its performance. An exercise of the right to assign contract rights does not necessarily indicate that there is any fault on the part of the original contractor or any benefit on the part of the new contractor. An assignment can be immediate or future. An immediate assignment occurs when the contract rights have already been delivered to the assignee. For example, a loan agreement requires the assignor to loan the assignee $5,000 on July 15. When the date arrives, the assignor has already assigned their rights to the assignee-it\'s time to pay up $5,000. A future assignment happens before the contract rights are delivered. For example, on July 16 a person wants to assign a loan agreement that is scheduled to close on July 30. The features and benefits of an assignment An assignment allows a party to transfer its contractual rights to another party. There are many reasons for performing an assignment. Perhaps the contracting party wants to pass its responsibilities and obligations to a more suitable entity-one with more resources, experience, or expertise. Another reason for an assignment is circumstances have changed-for instance, the contract was signed based on inaccurate information. If you have any questions about this article or similar matters, please contact our office, the Law Office of Yoel Molina, P.A., at fd@molawoffice.com or 305-548-5020, option 1
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3/6/2022 0 Comments Who cannot contract? Some people do not have the legal capacity to create a binding contract.
By The Law Office of Yoel Molina. For a contract to be legally binding, the people who signed the agreement must have "contractual capacity." What is contractual capacity? It is a legal term that refers to the minimum mental capacity required to enter into a contract. That is, it is said that people who cannot contract do not know what they are doing and can "cancel" or annul the contract. The law recognizes three categories of people who cannot contract: minors, people with mental disabilities and people who are intoxicated. If someone from these categories creates a contract, the agreement has the characteristic of being considered "voidable" by them. This in way of protection towards the party that cannot be forced to continue with a deal that takes advantage of its lack of intelligence or reasoning. Can a minor sign a contract? Minors (under the age of 18, in most states) cannot contract. That is, a minor who signs a contract can either honor the deal or void the contract. but, there are some exceptions. For example, in most states, a minor cannot void a contract for personal needs (food, lodging, etc.). A minor can annul a contract for lack of capacity only when he is still a minor. In most states, if the minor is already 18 years old and has not manifested the cancellation of the contract, it can no longer be canceled. Disaffirmation by a minor A minor may "reject" or cancel a contract if she declares her intention not to perform the contract. The minor may express his or her intention verbally (orally or in writing) or by actions that indicate that he or she does not intend to enforce the contract. For example, if a child agrees to paint the walls of his neighbor down the street and then sells her painting supplies, that action is understood to indicate his intention to reject the contract. However, the disaffirmation as mentioned above must occur before the minor reaches the age of majority, and the minor cannot choose which parts of the contract to set aside. That is, if the minor paid the compensation provided, such as money, to the other party involved, the other party is forced to make a return for consideration to the minor after the disaffirmation. Example of a minor voiding a contract Marta, a 17-year-old skateboarder, signs a long-term endorsement deal for a new staker clothing brand. She endorses the products and deposits her compensation for the endorsements over several years. At 19, Marta decides that she wants to cancel the agreement to have a better endorsement deal. She claims that she lacked ability when she signed the contract at age 17. The court will probably not allow Marta to void the agreement. For another example of underage contracts, see Is a 15-year-old's contract with cell phone service valid? Mental Incapacity and Contracts A person who lacks mental capacity can void, or have a guardian void, most contracts (except necessity contracts). As with contracts with minors, the contract may be voidable and not automatically voidable. That is, the person who could not make the contract can terminate it or allow it to continue as agreed in the clauses. In most states, the standard for mental capacity is whether the party understood the meaning and effect of the words that make up the contract or transaction. This is called a "cognitive" test. Some states use what is called an "affective" test: a contract may be voided if one of the parties to it cannot act reasonably or regularly and the other party has reason to know its condition. And some states use a third measure called a "motivational" test. Courts in these states measure capacity by the person's ability to judge and analyze whether or not she should be involved in the settlement. All of these tests can perform or reproduce variable results when applied to mental conditions such as bipolar disorder or multiple personality disorder. Mental Disability Assessment Example Mr. Smith contracted to sell an invention and later claimed that the contract was void because he lacked capacity. Smith had been diagnosed as manic-depressive and had been in and out of psychiatric hospitals. His doctor stated that Mr. Smith was unable to evaluate business when he was in a "manic" state. A court of appeal nes of San Francisco refused to rescind the contract and stated that Smith, in his manic state, was capable of contracting. "The manic phase of the disease under discussion is not, however, a weakness of the mind that renders a person incompetent to contract." In other words, the Court's view of the manic-depressive was cognitive: that the condition may have affected Smith's judgment but not his understanding at the time of hiring. Can a drunk person sign a contract? In general, people intoxicated by drugs or alcohol are not usually considered to lack the capacity to contract. Courts generally rule that those who are intoxicated should not be allowed to voluntarily evade their contractual obligations, but should instead take responsibility for the results of their self-induced altered mental state. But, if one of the parties is so far from reality that he cannot even understand the nature of the matter and the consequences of the agreement, and the other party (totally sober) takes advantage of the person's condition, then the contract can be voided by the party that was under the influence of alcohol. If you have any questions about this article or similar matters, please contact our office, the Law Office of Yoel Molina, P.A., at fd@molawoffice.com or 305-548-5020, option 1 2/6/2022 0 Comments What is a contract? What does a legally binding agreement include? By The Law Office of Yoel Molina. Contracts are legally binding agreements that adhere to most aspects of our personal and business lives. If you own or manage a business, you have to work through contracts all the time whether it be with your employees, contractors, vendors, commercial landlords, banks, utilities, insurance companies, and of course, customers. A contract is unique, and essential to business transactions, if it is binding on both parties. If one of the parties involved does not fulfill their part of the bargain, in this case the other party has the legal recourse for the damages coming. In this article, the Law Office of Yoel Molina analyzes the basic requirements that a legally binding contract must contain. The requirements of the contract To be enforceable in court, all contracts (whether written or oral) must meet several requirements. Which are: Consideration. As the saying goes "You give me and I give you". That's what consideration boils down to. Each party involved must supply something of value to the other party. Without this exchange, there is no contract. Offer and acceptance. There must be a clear or definitive offer to contract and a clear acceptance. Legal purpose. The agreement must have a purpose that must not violate or break the law. For example, a loan contract that charges interest above usury laws or a service contract to hire someone to rob a jewelry store or kill his wife cannot be enforced. Capable parts. To be able to enter into a contract, the parties must have an understanding of what they are doing. One example is the assumption that minors and the insane generally do not know what they are doing and, for that reason, the contracts they enter into will not be honored under certain circumstances. Mutual feeling. It is sometimes known as a "meeting of the minds". The contracting parties must intend to be bound by their agreement and must agree on the essential terms. These generalized rules are tied to federal and state laws that may impose more requirements on certain types of contracts. For example, certain contracts for consumption have to obey additional requirements and other contracts must be strictly in writing. The contract as a document The term "contract" is used to refer to a written agreement, which generally includes some or all of the following elements: introductory material (sometimes known as "recitals" or "recital provisions") Definition of key terms The statement of the purpose or purposes of the agreement the obligations of each party (and conditions that may trigger obligations) warranties as to various aspects of the agreement (sometimes expressed as warranties, representations, or covenants) boilerplate provisions, a signature block, and attachments or annexes. The contract as a process "Contract" is a noun, but it can also be used as a verb. When you hire someone, you participate in a process that generally has three phases. Phase 1: the contemplation of the deal. Each of the parties involved makes an evaluation and analysis on the possible deal and its risks ("Is this person trustworthy?") or predicts what will happen ("Will I regret paying this price for this phone next month?"). ? wouldn't it work?"). Phase 2: An agreement must be reached. Through this phase, the parties go through a negotiation and the terms are agreed, usually formalized in a written contract or some other documented evidence of the agreement (such as a receipt or purchase order). Phase 3: Execution and compliance. Already when the contract enters into force, the parties involved are legally bound to comply with their mutual requirements. If one of these does not comply, the other party may sue to enforce the agreement. If you have any questions about this article or similar matters, please contact our office, the Law Office of Yoel Molina, P.A., at fd@molawoffice.com or 305-548-5020, option 1  In a digital world with so many constant changes, the most appropriate thing to do is to create certain tools to manage the evolution of your business, that's why a good invoicing tool is essential for the business results to be rewarding. Well, the benefits of invoicing your clients are not only good for the business itself, we know that this helps to drastically improve commercial efficiency and cost control. It is good to point out that for fiscal and financial control purposes of your business, clearly, your most convenient solution is to generate and request invoices. Creating a record of your transactions and services has never been so manageable, this will bring order to your processes and also ease the process of declaring your taxes. But we should take into account that in addition to getting benefits in that direction, it also lays the basis for a good relationship between the business and the client, allowing the client to come back to you after having worked with you! Here I leave you with 5 benefits why you should always invoice your clients: Save Money As I said before, we are living in the digital era, so electronic invoices are here to stay. Less paper, less printing, and fewer expenses. E-invoices help you reduce the amount of money you spend on all these processes, making them even easier for you and your business. Go green! Business under control As hoped, having an invoicing system will provide you with better organization and storage of your invoices, you can avoid late payments and send them notices to pay earlier, furthermore, you will be able to facilitate the documentation of your company and generate reports in a more effective way. Win time and comfort Issuing an electronic invoice is a quick and easy process. Many business owners and freelancers have reported that they now save time sending receipts to their clients. Offer improved service If there is something customers love, it is speed, because by showing them how your company works, I strongly suggest you use apps like QuickBooks, it is a good alternative to have everything in place, plus you improve your service and attract more customers. Fewer bugs and errors When processes are automated you reduce errors that may have been made in the past, and you have the possibility of not sending any mistake to a client, with this you simplify the administrative processes. Day by day we are sharing information and content for business people. If you like this kind of content I invite you to keep reading more articles in my page. Click here now to join, tell us who you are, and always have the information that you need to support your company’s success. Yoel Molina, Esq. (AKA “Mo”) Feel free to join our WhatsApp group if you want to know more about this and more!  En un mundo digital con tantos cambios constantes, lo más adecuado es crear ciertas herramientas para gestionar la evolución de tu negocio, por eso una buena herramienta de facturación es esencial para que los resultados del negocio sean gratificantes. Pues bien, los beneficios de facturar a tus clientes no sólo son buenos para el negocio en sí, sabemos que esto ayuda a mejorar drásticamente la eficiencia comercial y el control de costes. Es bueno señalar que a efectos de control fiscal y financiero de su negocio, claramente, su solución más conveniente es generar y solicitar facturas. Crear un registro de sus transacciones y servicios nunca ha sido tan manejable, esto traerá orden a sus procesos y también facilitará el proceso de declaración de sus impuestos. Pero hay que tener en cuenta que además de obtener beneficios en ese sentido, también sienta las bases de una buena relación entre el negocio y el cliente, ¡permitiendo que el cliente vuelva a ti después de haber trabajado contigo! Aquí te dejo 5 beneficios por los que deberías facturar siempre a tus clientes: Ahorro de dinero Como he dicho antes, vivimos en la era digital, por lo que las facturas electrónicas han llegado para quedarse. Menos papel, menos impresión y menos gastos. Las facturas electrónicas te ayudan a reducir la cantidad de dinero que gastas en todos estos procesos, haciéndolos aún más fáciles para ti y tu negocio. ¡Sé ecológico! Negocio bajo control Como era de esperar, contar con un sistema de facturación te proporcionará una mejor organización y almacenamiento de tus facturas, podrás evitar la morosidad y enviarles avisos para que paguen antes, además, podrás facilitar la documentación de tu empresa y generar informes de forma más eficaz. Gane tiempo y comodidad Emitir una factura electrónica es un proceso rápido y sencillo. Muchos empresarios y autónomos han declarado que ahora ahorran tiempo enviando facturas a sus clientes. Ofrecer un mejor servicio Si hay algo que les gusta a los clientes es la rapidez, porque al mostrarles cómo funciona tu empresa, te aconsejo mucho que utilices aplicaciones como QuickBooks, es una buena alternativa para tener todo en su sitio, además de que mejoras tu servicio y atraes a más clientes. Menos fallos y errores Cuando se automatizan los procesos se reducen los errores que se podían cometer en el pasado, y tienes la posibilidad de no enviar ningún error a un cliente, con esto simplificas los procesos administrativos. Día a día estamos compartiendo información y contenido para los empresarios. Si te gusta este tipo de contenido te invito a seguir leyendo más artículos en mi página. Haz clic aquí ahora para unirte, dinos quién eres y ten siempre la información que necesitas para apoyar el éxito de tu empresa. Yoel Molina, Esq. (AKA "Mo") ¡No dudes en unirte a nuestro grupo de WhatsApp si quieres saber más sobre esto y más! |
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