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application_of_contract_law.docxRunning head: CONTRACT LAW TO NON-EMPLOYMENT SITUATIONS 1
CONTRACT LAW TO NON-EMPLOYMENT SITUATIONS 6
Contract Law to Non-Employment Situations
Name
Institution
Introduction
Contract law explains the legal system applied where two parties enter an agreement after negotiating a lawful object. Each of the two parties has legal obligations in the agreement. In non-employment work situations, contract law applies where agreements are made. Examples of non-employment situations with contract law include the purchase of expensive property, dealing with software vendors, and contract farming.
Land Contract
Contract law applies in the purchase of expensive property to bind the buyer and the seller’s legal obligations (Andrews, 2015). In this case, the seller provides financial advice to the buyer at a specific purchase price and the buyer repays the loan installments in a given period. Land contracts give the seller legal entity to the property until the buyer fully pays the installments. Therefore, the seller retains the legal title but the buyer is able to take possession except the legal ownership. Selling property using a land contract provides a more efficient way of the seller to move the property. This is because using land contract is easier than following the rigid requirements used in bank financing (Fried, 2015).
Land contract highly used in the United States. However, some states call them trust deeds or contract for deeds (Jondle, Hill &Sanny, 2015). They all refer to the same process of privately held mortgages. In all cases, the buyer relies on the seller for financial support. This is an alternative for saving up for bank loans. The seller transfers the ownership of the property to the buyer after full repayment of the loan.
Contract Farming
Contract farming is agricultural production based on an agreement between a buyer and a farmer. The contact establishes conditions in which the production and marketing of the farm products will be conducted. Mostly, the farmer agrees to provide a specific quantity of agricultural product. Consequently, the agricultural product should meet required quality standards and time as agreed with the buyer. In return, the buyer commits to buying the product and in some cases, the buyer may also commit to support production (Fried, 2015). For example, the buyer can supply farm inputs, provide legal advice, and help in the land preparation process.
In contact farming, both parties can benefit from the contact. The farmer is guaranteed a market for his or her product. However, there are also disadvantages of using contact farming. For example, if one party validates the contract the affected party loses. Contact problems such as the farmer sells to another buyer, the buyer refuses to meet the agreed prices and the buyer downgrades the farmer’s products are common problems in contract farming (Fried, 2015). Consequently, contractual farming is not restricted to certain types of agriculture products; thus, it is highly applicable in most farming situations. Contractual farming has been successfully applied in some export processing farms such as tobacco and flower farming.
Contract laws in Software Purchase
A Software is considered intellectual property in the United States. Thus, software rights are granted as copyrights and the software belongs to the holder of the software’s copyrights. The owner can easily dictate terms of the software use. The software owner can offer license agreements in order to allow the lawful use of his or her software. Copyrights laws have no financial requirements from a license grant. However, the copyright holder may attach various requirements to the license such as restrictions. For example, the copyright holder may offer a license grant to another party, but they may also limit the number of copies the license can produce (Jondle, Hill &Sanny, 2015).
Contract law in the purchase of software license applies if the two parties have reached an agreement. The first party makes an offer, the second party accepts the offer provides terms of agreement. Software distribution courts accept license agreements after the licensee has been provided with the license agreements before installing, downloading, or using the software. In the United States, copyright license refers to a contract between the licensee and the copyrights holder (Andrews, 2015).
Contact laws in non-employment situations dictate the terms of agreement and the legal obligations of both parties in the agreement. These agreements are mostly done to reduce the risk of doing business for both parties. Contract farming has eased the farming process in most sectors such as poultry, beef, and flower farming. Further, large corporations require contract laws to acquire a steady supply of output. Software use is growing with the rise in technology (Fried, 2015). Technology is now a critical factor in production. Thus, software demand has improved vastly with the increase in technology. Contract laws in software use are necessary to ensure the legal obligations of the licensee and the copyright holder are not validated.
Conclusion
The use of contact laws has grown in most states within the United States. The state, local and federal laws interpret contractual obligations in business contracts. This is done in order to enable ease of doing business in the United States. Further, small businesses also use contract laws, thus, the use of contract laws is on the rise. The essence of contract laws is highly regarded because they create a common ground for agreements.
References
Andrews, N. (2015). Contract law. Cambridge University Press.
Fried, C. (2015). Contract as promise: A theory of contractual obligation. Oxford University Press, USA.
