Contractual Rights Examples: Everything You Need to Know
Contractual rights examples refer to the rights guaranteed to the parties who enter into a valid contract.3 min read
Contractual rights examples refer to the rights guaranteed to the parties who enter into a valid contract. A contract is a legally binding document that will state the rights and expectations of all parties. Generally, the rights will be for the sale and purchase of products and services. Examples of contract rights that may appear include:
- The right to sell a service or product.
- The right to purchase a service or product.
- The right to refunds and repairs.
- The right to payment and delivery in a timely manner.
- The right to state any grievances.
- The right to seek compensation or redressal.
If the contract is for employment, the terms will list what the employer and employee have agreed upon. Employment contracts should be in writing and signed by all parties involved. Oral contracts are difficult to enforce when disputed.
Implied Contract Rights
Implied contract rights do not have to be stated in the contract. They exist and are enforceable due to the implied state and federal law and are seen as so obvious they don't need to be written in the contract. Examples of implied contract rights include the following:
- Quasi-contracts are awarded by the court, even without a contract, in order to compensate one party for services rendered.
- The right to be free from duress is when a contract is deemed invalid because one of the parties did not consent to the contract.
- Good faith and dealing is the requirement that for the contract to be valid there cannot be any deceit or concealing information between the parties involved.
- The right to be free from fraud shows that a contract will be invalid if any fraud or misrepresentation or omission of information has taken place.
Contractual Rights and Duties
Three common contract types are insurance, employment contracts, and contracts of sales. Within the contract, rights and duties will be written out in order to show what is expected and what will happen if those terms aren't met. Some examples include:
- The duty to indemnify, which is a legal requirement that states one party will pay for the loss of the other. This is a typical scenario for insurance contracts. If the insured party has provided false information, the insurance company has the right to be paid back any money that has been provided to the insurer.
- The right to rescind, which is the right to terminate the contract. Most contracts will include requirements like a list of circumstances that must be present or a timeframe when termination can take place.
- The contractual duties, which will list the services that are expected to be completed. This can be anything as long as it is legal.
- The duty of payment, which will show how and when payment is expected. It may also list what forms of payment are acceptable. It will usually state when the withholding of payment may occur if the contract isn't fulfilled.
Rights of Contractual Employees
A contractual employee is hired for a specific job for a preset time period. Once the time period has ended, the contractual employee no longer works for the company. Some rights that contractual employees can receive include:
- The right to work in a location that meets the standards of the Occupational Safety and Health Administration (OSHA). This includes:
- Proper handling of chemicals.
- Equipment that is ergonomically designed.
- Hearing protection provided in loud work environments.
- The right for contractual employees to receive the same safety training the company's permanent employees receive if hazardous materials are present.
- The right for contractual employees to report any unmet OSHA standards to OSHA.
- The right to compliance with the Americans with Disabilities Act. Any violation of the Americans with Disability Act is not allowed. If discrimination takes place, a contractual employee may report the issue and cannot be fired for filing the complaint with the American Disability Office.
- The right to expect that all rights in the contract be upheld. For example, when a bonus is promised if a task is completed by a certain date, the bonus must be provided if that scenario occurs, regardless of whether it is money or vacation days.
If any of the contractual rights are violated, the contract employee has the right to sue. The violation will determine if the case will be in a local or federal court. OSHA violations are heard in federal courts, while local courts are used for nondelivery of bonuses or other perks.
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