What Are Contractual Rights?

A contract right is the performance that is guaranteed to a person when they enter into a valid, legal contract with another person or entity. Contract rights usually involve business issues, such as the provision of products and services. However, they can also involve other subject matter.

What Are Some Common Contract Rights?

Examples of common types of rights that might arise from a contract may include the following:

• Rights to purchase a particular product or service of a particular description;
• Rights to sell a product or service;
• Rights to be the exclusive seller or buyer of a product;
• Rights to delivery at a specified time and place;
• Right to timely payment;
• Rights to refunds or repairs;
• Various rights according to the specific intentions of each party, as described in the clauses of a contract.

Generally, the contract itself is the document that defines the rights and obligations of the parties to the agreement. State law governs contracts, and while the laws of each state are mostly similar when it comes to contract law, there may be differences as well.

Certain contracts may be governed by federal law, especially when a person or company contracts with the federal government itself and it is a party to a contract.

It is also important to keep in mind that contact can be oral. An oral agreement between parties can be every bit as valid and binding as a written one. It might be more challenging to prove the existence and exact terms of an oral contract, and it might be better to put contracts in writing. Nonetheless, a contract that is valid and legal, that gives rights to the parties, and imposes obligations on them is possible.

What Are Implied Contract Rights?

Besides the contract obligations that are expressly stated in the contract, there are also “implied contract rights.” These are rights that exist based on the existence of contractual laws and policies. These do not need to be written in the contract terms (although they can), as they are implied by state and federal contract law. These include:

• Good faith and fair dealing: Each party in a valid contract is expected to operate according to “good faith and fair dealing.” This means that they are not to act deceptively and should disclose all relevant information regarding the transaction. They should act in good faith and deal fairly with the other party;
• Rights to be free from duress: Contracts should only be formed based on each party’s free, informed decision. A contract that is formed under duress, i.e., threats of harm, is invalid;
• Rights to be free from contract fraud: Likewise, the parties have a right to be free from fraudulent misrepresentation of information;
• Quasi-Contracts: When there are no actual enforceable contracts, courts may imply a contract to avoid unjust enrichment upon a benefiting party. This would arise if a party conferred a benefit to another party and the benefiting party knew or should know that the party giving the benefit expects compensation for the service.
  • The courts will usually allow the party to recover reasonable value for his or her services even if no valid contract existed.

What if My Contract Rights Have Been Violated?

If a person believes that their contract rights have been violated, they may have a legal claim. A person who thinks that a contract to which they are a party has been violated or “breached” in legal terminology should first review their contract and examine the specific provisions related to their rights.

A contract should specify what each party to the contract is obligated to do. For example, one party may agree to deliver a certain product in a certain quantity to the other party on a certain date. The other party may promise to pay an agreed-upon price at a specified time in a specified manner for the product delivery. The contract may specify who is responsible for arranging delivery and who pays for it.

If the buyer does not pay the seller as promised in the contract, the seller’s contract rights have been breached. The seller has a right to be paid as promised in the contract. If the buyer does not perform, the seller has grounds to file a lawsuit against the buyer for breach of contract.

If a person has experienced the breach of a contract by the other party, they may wish to consult a breach of contract attorney for guidance as to how to proceed. An attorney’s advice can be helpful because a person needs to analyze the situation to know how to proceed legally.

For example, a breach of contract lawsuit can be filed in more than one court. It depends on the amount of damages that a person seeks. In most states, if the damages the person seeks are $5,000 or $10,000, they would file their lawsuit in small claims court. If the amount of controversy is higher, then a different court would be the appropriate court in which to file the lawsuit.

There are other factors at issue as well that affect which court a person would choose for their lawsuit. A lawyer can help with this issue. In some cases, a person might even want to file a lawsuit in a federal court.

In preparation for the possibility of a lawsuit, a person would want to have a copy of any written contract at hand. A person may want to compile other documents as well. They might want to identify other people who might be witnesses to what happened in the course of the contract relationship. These would be people who might help prove how their rights were violated.

Also, a person should write their own short account of what happened in a quiet moment when they can make sure the statement is complete. Of course, they would want to relate in what way they think their rights were violated.

When a breach of contract happens, the non-breaching party would, in all likelihood, try to negotiate a resolution of the issue with the party who is in breach of the agreement.

But if an effort to negotiate a resolution fails, they may sue for damages caused by the breach. The non-breaching party may also be entitled to a few other kinds of remedies:

1. Damages;
2. Specific performance;
3. Cancellation of the contract;
4. Restitution for any benefit conferred on the breaching party.

What Is the Difference Between Contract Rights and Obligations?

The difference between contract rights and contract obligations is that one is a benefit a person receives from the contract, while the other is the duty or responsibility that the same person promises to the other party to the contract. So, each party to a contract has both a right and an obligation.

As noted above, contract obligations are those duties that each party is legally responsible for performing under a contract agreement. The obligation is either a type of service one has to provide, a payment that has to be made, or any other performance promised to the other party. If either party fails to perform their contractual obligation on the terms and conditions specified in the contract, the other party can bring a claim for breach of contract.

Do I Need a Lawyer for Help With Contract Rights?

When entering into a contract, you may wish to consult a contract lawyer for legal advice and support. LegalMatch.com can connect you quickly to an attorney who can help you negotiate, draft, or review a contract to ensure that your contract rights are being fully protected. Your lawyer can clearly explain what rights and obligations you will have under any proposed contract. This is so you know what you are getting into before you put your signature on the document.

Your lawyer would also be able to represent you in court if you believe that your contract rights have been violated.