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Contract Law Problems

Contract law refers to the body of law that oversees agreements pertaining to the exchange of services or goods. Contract law includes such topics as contract obligations, contract privacy, contract actions, and termination of contracts. Many questions arise when dealing with contract law. Take a look at the more commonly asked questions that have been answered by Experts.

In the state of California is it legal for internet/phone services to activate an automatic contract renewal? If so, is there any way an individual can get out of this contract?

With the exception of residential leases, automatic renewal clauses are legal and used in regular contract law. You need to read your lease to find any options that you may have for getting out of the lease. If the individual cancels their lease, the individual may be affected by a liquidated damages clause.

If you could prove that the drafter of the contract deliberately hid the automatic renewal in the fine print of the contract as a way of fooling you into another year of service, the individual may be able to have the contract rescinded. However, proving this will be an extremely hard task.

At this point it would appear that the individual’s only options are to either to cancel the renewal and pay a penalty or prove the renewal was hidden as a way of deceiving you. The individual may be able to work with the company and agree on a payment for the cancelation penalty.

According to Contract Law if a bank securitizes a mortgage is that contract broken? If a bank does not have the original loan offer but has sold on can it still collect money from an individual?

This type of business happens daily without becoming an issue. The fact that the bank has merged with another bank and securitized a loan doesn't break a contract between the bank and you. Regardless of what bank holds your loan, you are entitled by contract to pay the loan. There generally isn't an issue with a bank collecting loan payments after it has sold the loan to another bank. As long as your payments are made, you will be ok.

Do company (union) contracts supersede existing law?

The answer to that would depend on how a statute is worded. For example, if a statute reads that an employer must assist in payment and the union contract says that the employee will be fully responsible for payment, the union contract would trump the statute. That is true only if the statute allows the leniency for such an act to take place. If the statute reads that the employer will pay; a contract cannot change the fact.

If an individual signed a contract to sell a parent’s house and their sibling in law signed the contract with the other siblings, because the in law signed but is not a heir or participant in the estate, is this enough to void the contract?

The fact that the in law is not an heir or a participant to the estate isn't enough reason to void the contract. You agreed to the sale of the parent’s house when you signed the contract. If you back out of the contract now, the buyer may sue you for breach of contract.

Contracts are drawn up every day and are vital part of most business. Before signing a contract you should know what you are signing and how the signature may affect you at a later date. Signing a contract shouldn't be taken lightly. One should read over a contract very carefully before signing. You should ask an Expert to assist you in reviewing the contract before obligating yourself.
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