A contract is a legally binding document that lists the rights and duties of all parties to the contract. Insurance contracts, contracts of employment, and contracts of sales are three of the most common types found today. Many contracts are boilerplates in which you can insert specific information relevant to your agreement.
Duty to Indemnify
The duty to indemnify requires a party to legally assure that what they have said is true and that if the other party suffers a loss while acting on good faith, the bearer of the duty will recuperate them for said loss.This form of duty is often found in insurance contracts: if the insured lies on the form, then the insurance company has the right to claim back any money paid out based upon the false information.
Right to Rescind
The right to rescind is the right to terminate the contract. The document may stipulate certain conditions that apply to this right. A time period is common, or it may list a specific set of circumstances that must be present in order for the right to be available. An example of a circumstance that must be present is failure of one party to carry out their duties as listed in the contract.
Contractual duties will include the services that are due to be carried out by one party. This can be anything; so long as it is within the scope of the law. Some duties include insuring the other party against loss for insurance contracts, or delivering goods on a certain date for a sales contract. These clauses will install a right on one party to have the services performed and a duty on the other to carry out the service.
Contracts will outline the duty of payment. This will include how and when the money is to be paid, and what circumstances govern withholding of payment. The contractual duty of payment will usually only burden one party with the duty while conferring a right of payment to the other party. If a party refuses to carry out his duty to pay and do not follow the circumstances listed under the contract, then the other party may take legal action to force him to pay the agreed-upon sum.
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