Navigating Contract Management: Understanding Common Law Contracts

Contract management is a critical aspect of any business, yet it’s often overlooked or underestimated. But let’s be real here, as a professional, you know that contracts are the backbone of any successful operation. And if you want to stay ahead of the game, you need to understand the ins and outs of contract management – including the often-overlooked topic of common law contracts. 

Common Law Contracts

So, what are common law contracts? Simply put, they’re agreements that are formed and governed by common law principles, rather than statutory laws. These contracts are based on the principles of fairness and reasonableness, and they’re often used in situations where there’s no specific legislation in place. Some examples of common law contracts include:

• Employment contracts: An agreement between an employer and employee that sets out the terms and conditions of employment, such as salary, benefits, and job responsibilities
• Partnership agreements: An agreement between two or more individuals or entities that outlines the terms and conditions of a partnership, such as the distribution of profits and responsibilities
• Lease agreements: An agreement between a landlord and tenant that sets out the terms and conditions of renting a property, such as the rent amount, the length of the lease, and the responsibilities of each party
• Independent contractor agreements: An agreement between a company and an independent contractor that sets out the terms and conditions of the contractor’s work, such as the scope of the project and the payment terms
• Service agreements: An agreement between a company and a customer for the provision of services, such as consulting, repair, or installation
• Sale of goods agreements: An agreement between a seller and a buyer for the sale of goods, such as merchandise or equipment
• Loan agreements: An agreement between a lender and borrower that sets out the terms and conditions of a loan, such as the interest rate, repayment schedule, and collateral
• Letter of Intent: A non-binding agreement indicating a party’s intention to enter into a binding contract in the future

These are just a few examples of common law contracts, but there are many other types of agreements that fall under this category.

Importance of Understanding Common Law Contracts in Contract Management

Just because common law contracts aren’t specifically regulated doesn’t mean they’re any less important than statutory contracts. In fact, a deep understanding of common law contracts can give you a significant edge in contract management.

For starters, common law contracts are often used in situations where statutory contracts don’t apply, or where they’re not practical. And, understanding how common law contracts work can help you draft and negotiate contracts that are tailored to your specific needs and circumstances.

Additionally, understanding common law contracts can also help you navigate the complexities of contract enforcement and dispute resolution. These contracts are often based on principles of fairness and reasonableness, and a deep understanding of these principles can help you avoid disputes and resolve them effectively if they do arise.

Managing Common Law Contracts

So, how do you manage common law contracts? It starts with understanding the principles that govern these contracts. You need to be able to draft and negotiate contracts that are fair and reasonable, and then take into account the specific needs and circumstances of your business.

You also need to have a plan in place for ensuring compliance with the terms of the contract. This may include regular reviews and audits, as well as established protocols for dealing with breaches and disputes.

Challenge the Status Quo

Understanding the often-overlooked topic of common law contracts can give you a significant edge in navigating this critical aspect of your operation. Don’t be afraid to challenge the status quo and go against the grain. When it comes to contracts, knowledge is power. So, don’t let anyone tell you that common law contracts are insignificant or unimportant. Embrace the power of common law contracts and take your contract management game to the next level!

Contract Management Software

Want to streamline your contract management process and save time and resources? Look no further than WebCM! Our cutting-edge contract management software was designed by contract managers to help you manage all aspects of your contracts, from drafting and negotiation to compliance and dispute resolution. With WebCM, you can easily create, store, and track contracts, automate contract-related tasks and access real-time data and analytics to make informed decisions.

Don’t just take our word for it, try WebCM for yourself with our free 90-day trial and experience the difference it can make in your contract management process. Reach out to us via our contact form, or contact us today to see how WebCM can help you take your contract management to the next level. Whether you’re an individual or business, we have the right solution for you!