April 20, 2015
Understanding a Vehicle Purchase Contract
When reading through any type of contract, whether it’s a legally binding contract or not, it is important that you grasp the concepts that are being presented through the use of the contract. In order to properly understand a contract, there are certain terms that you will need to be familiar with in order to ensure that you understand what you are agreeing to. There are many basic terms that are used in contracts that are legally binding, and these terms are perhaps the most important part of the contract, which means that the line that one of the following terms is included in should always be given special attention. This article will cover the basic terms that are used often in contracts that you will encounter.
Acceptance – Acceptance is the agreement to any terms listed in the contract. Until acceptance has been given, any terms in the contract can be taken back.
Conditions – Conditions of a contract are the basic terms of a contract that will be agreed to. When conditions are given, the individual signing the contract will read the conditions and either accept them or deny them.
Exemption Clauses– Exemption Clauses are terms of a contract that protect the party from liability in the terms of specified outcomes that may happen. Exemption Clauses are often included in a contract in order to ensure that the individual signing the contract cannot place blame for any negative outcome on the party writing the clauses.
Express Terms – Express Terms are the terms and conditions that are specifically stated in the contract.
Jurisdiction – Jurisdiction usually states the state or country in which the legal laws will be placed on the terms of the contract.
Liability – Liability is defined as the legal obligation of a party to cover any damages or blame that happens during the period in which the contract is effective.
Subject to Contract – Usually, this term will be used by any parties who are involved in the writing and signing of a contract. This term means that the discussion that is currently being held does not concern the overall acceptance of a contract.
Void – A contract becomes void when the individual or party who has accepted the terms of the contract can no longer abide by the terms listed in the contract.
Warranty – Warranties are defined as promises that are laid out in a contract, but are not on the same level as conditions. When a warranty is given, the party creating the contract is liable for damages to the individual or item listed in the contract.
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