List of 4 Key Rights When Entering into a Contract

Key Takeaways

• Contract Rights: These refer to the specific benefits and entitlements granted to the parties involved in a legally binding agreement.
• Common Contract Rights: Rights include the right to buy, sell, exclusive rights, and rights to product/service delivery or refunds.
• Implied Rights: These are not directly stated but are inferred by law, like the right to good faith dealings or freedom from duress.
• Violation of Contract Rights: Breach of contract may result in remedies like specific performance, damages, and even restitution.

Contract rights are those granted though a valid contract.

What Are Contract Rights?

Contract rights may be expressly written. An example is the exclusive right one has to use copyrighted material. Contract rights may also be inferred, such as the right to fair and equal disclosure of material.

Both parties to an agreement have contract rights. For instance, one party may have the right to buy a product, while the other party has the right to supply it. Naturally, contracts address different rights, depending on the parties' needs.

A concept related to contract rights is “contract duties,” which refers to a party's obligations under the agreement terms. Contract rights typically involve business matters, such as providing products and services. However, these rights may also involve other subject matter.

Following are common examples of contract rights:

• Right to sell a product or service
• Right to buy a particular product or service
• Right to be the only buyer or seller
• Rights to repairs or refunds
• Right to delivery and timely payment
• Various other rights according to a party's specific intentions

List of 4 Key Rights in a Contract

When entering into a contract, there are certain inherent rights that each party holds. These rights are typically explicitly stated or implied by the agreement and governing law. Below is a list of 4 rights you have when entering into a contract:

1. Right to Receive Benefits: You have the right to receive the benefits agreed upon, whether that's a service, product, or compensation.
2. Right to Fair Treatment: Contracts come with an implied right to fair treatment and honesty, ensuring good faith dealings.
3. Right to Terminate: If the other party breaches the contract, you may have the right to terminate the agreement and seek remedies.
4. Right to Seek Compensation: If a contract is breached, you have the right to compensation or remedies as defined in the agreement or by law.

Typical Contract Rights

Every contract has an implied “good faith and fair dealing” requirement. It's a basic right to deal with a party who treats you with fairness and in good faith. Parties should use all reasonable efforts to deal honestly with each other and to disclose all essential matters under the contract.

Specific contract rights may include the following:

• A right to exclusive ownership or usage of material, label, or product
• The right to file a lawsuit or to litigate over a contract dispute
• A right to complete and timely payments for products and services
• The right to transfer ownership rights or resell them (varies with each agreement)

It's sometimes possible to assign contract rights to another party. This is often beneficial or necessary. For example, a construction company may need another company to help it finish a project. Because assignments and delegations are often quite complicated, you'll probably need the assistance of an attorney in these cases.

Rights to Dispute Resolution

In the event of a dispute, many contracts provide a right to seek legal action or resolution. Here are some rights related to dispute resolution:

• Right to Litigate: If a contract is breached, you have the right to take the matter to court.
• Right to Alternative Dispute Resolution (ADR): Many contracts include clauses for arbitration or mediation, offering a non-litigation path to resolve disputes.
• Right to Specific Performance: In some cases, you may have the right to demand the other party fulfill their contractual obligations as agreed.

Implied Contract Rights

Along with expressly stated contract rights are "implied contract rights,” which exist based on current contract laws and policies. While they can be written into the agreement, they're usually simply implied by federal and state contract laws.

They include the following:

• Good faith and fair dealing: All parties in valid agreements are expected to act in good faith and with fair dealing. This means they don't act deceptively. They're expected to disclose all relevant information under the agreement.
• Right to be free from duress: Contracts that are formed under duress — when one party is forced to sign — are invalid. All parties should be free and informed enough to enter into an agreement.
• Right to be free from fraud: Parties have the right to be free from fraudulent information or misrepresentation.
• Quasi-contracts: When no enforceable contract exists, the court may imply one to avoid unjust enrichment on a benefiting party. This could happen if a party conferred a benefit onto another party, with the benefiting party knowing that the first party expects compensation for this service. Courts usually let the party recover reasonable value for services even if there's no valid agreement in place.

Implied Rights in Business Contracts

Some rights in a contract are implied, meaning they are not directly stated but are inherent under the law. These include:

1. Good Faith and Fair Dealing: All parties must act honestly and fairly, ensuring the spirit of the contract is honored.
2. Right to Freedom from Duress: Contracts signed under duress (such as threats) are generally unenforceable.
3. Right to Fair Representation: This includes the right to transparent information about the agreement's terms and conditions.
4. Quasi-Contract Rights: Even in the absence of a formal contract, certain circumstances (such as unjust enrichment) may imply rights to seek compensation.

What if Contract Rights Are Violated?

You might have legal claim if you feel someone has violated your contract rights. Review your agreement and look over the specific provisions that relate to those rights. You should also compile any witness statements and other documents that could help prove the violation. Write a brief account of what happened, explaining how you believe a rights violation occurred.

In the case of a breach of contract, the non-breaching party can still enforce the contract and sue for damages. The non-breaching party might be entitled to the following remedies:

• Specific performance
• Damages
• Contract cancellation
• Restitution for benefits conferred to the breaching party

All parties to a contract have certain rights. Some are expressly stated, and others are implied. If you're unsure of your rights, it's best to consult a legal professional before you sign any contract. A lawyer can explain any confusing terms and conditions, so you're a well-informed party to the agreement.

Remedies for Contract Violations

If your contract rights are violated, there are several legal remedies available:

1. Specific Performance: The court may require the breaching party to fulfill the contract’s terms as originally agreed.
2. Monetary Damages: Compensation for financial losses suffered due to the breach.
3. Rescission: The contract can be canceled, and any exchanged goods or services may be returned.
4. Restitution: You may be entitled to recover the value of any benefit conferred on the other party during the agreement.

Frequently Asked Questions

1. What are the basic rights in a contract?
   Common rights in a contract include the right to receive benefits, fair treatment, dispute resolution, and the right to compensation if the contract is breached.
2. What happens if my contract rights are violated?
   If your rights are violated, you may have the right to specific performance, damages, rescind the contract, or receive restitution.
3. Can I sue if my contract rights are breached?
   Yes, you can sue the breaching party for damages or seek other remedies as provided in the contract or under the law.
4. Are there implied contract rights?
   Yes, some rights, like good faith dealings and the right to be free from duress, are implied by law, even if not stated explicitly in the contract.
5. How can I protect my contract rights?
   To protect your contract rights, ensure all terms are clearly stated, and consider seeking legal advice to understand your obligations and protections.

If you need help with list 4 rights you have when entering into a contract., you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.