Thursday, February 9, 2012

The World of contracts

What is a contract? How often have you use it? This sounds easy but little do we know how important it is in our daily life, let us have a look at some of the definitions I found online about what is a contract.

A contract is an agreement entered into voluntarily by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific performance of the contract or an injunction. Both of these remedies award the party at loss the "benefit of the bargain" or expectation damages, which are greater than mere reliance damages, as in promissory estoppel. The parties may be natural persons or juristic persons. A contract is a legally enforceable promise or undertaking that something will or will not occur. The word promise can be used as a legal synonym for contract.[1], although care is required as a promise may not have the full standing of a contract, as when it is an agreement without consideration. Source:

It is advisable you make your contract written (soft and hard copies) so that in future you can refer to them and take required measures. I have a story to share, in my bid for finding a saving scheme early this year I was advised with friends to try quite a number of options which I did by visiting different offices in person while on the other side doing my own online research.

In this fast moving and competitive world if you don’t watch out keenly you might end up signing up for things that you didn’t want. In my pursuit I learned a lot and that’s why I would like to share a few advice with you, actually I didn’t sign up for any because none of the institutions I approached really did understood my needs and one institution which I won’t mention tried to trick me in signing a deal for 10 -16yrs while I was looking for something short term like 2 – 3years. I thank the advent of internet and my close friends who helped me unlock the secret clauses before signing. I would urge the youth to do the following;

  • Think twice when the deal is too sweet!
  • Ask for peoples experience with the institution especially when it involves termination of the contract.
  • Read and read once again the contract before signing.
  • If possible ask if you can take the contract with you so that you can read when you have settled down, it help to have a fresh look.
  • Consult with true friends and hear their opinions.
  • Check how realistic is the deal to you because in most cases the institutions are out there also to make money and other benefits.
  • It’s good to be a risk taker but take risks that are not full of regrets especially when it involves finances.
  • Visit their offices with a friend for further explanation.
  • Do background check of the institution on the internet and other sources.

Otherwise in generally, it is good to be informed and have knowledge about key things that make or break our lives directly or indirectly thus as the adage goes “No one has the monopoly of knowledge” use all the available resources to keep abreast with what’s happening around you.