CONTRACTS IN SPORT AND PHYSICAL

ACTIVITY

Chapter 10

What is a Contract

In simple terms its an agreement between two or more parties that imposes some kind of obligation or responsibility on each May exist in written or oral form and must be

considered in light of their effectiveness The effectivness of any contract is a simple matter of

whether or not it results in the actions required of each of the parties

What is a Contract

For a contract to be breached there has to be an understanding of both parties involved. There has to be specific steps performed

Meeting of minds The parties to the contract must have a mutual understanding of

the context and content of their agreementContracts are created when one or more parties makes

an offer that is accepted by the other party If the one party doesn’t accept the terms then they can make a

counter offer, which must then be accepted by the other partyIn order to have a legally binding contract then there

must be some form of consideration, something of value must be exchanged

What is a Contract

The enforceability of the contract will also depend on the specificity of the terms used Poor language in a contract can lead to complications should the

contract be litigatedAll parties to a contract must have sufficient legal

capacity for the contract to be binding and enforceable Under law minors and persons who suffer from mental incapacity

cannot be held to binding contractual agreements These are considered voidable

Minors may enforce agreements they make, but they can also revoke them at will and remain free from contractual enforcement

The courts will also rarely enforce a contract that has at is core an illegal subject

What is a Contract

Certain types of contracts are governed by a national series of laws based on a statutes known as the uniform commercial code Has been modified state to state but some form holds true in every

statethe types of contracts covered are

Commercial transactions This would be the sale of good such as uniforms, basketballs, and

equipment Negotiable instruments

This would include checks, bills, of lading, letters of credit, and other documents used to facilitate the payment of monies for the sale of goods

Secured transactions These are contracts in hich one party pledges or gives an intrests in

goods as security for the transaction

What If You Don’t Call It A Contract

It does not have to called a contract for the courts to view it as one. The following have been viewed as equivalent by the courts Personnel manuals By-laws of association Company employee bulletins Procedures manuals College catalogs Published rules and regulations Operations manuals Disciplinary rules Waivers, permissions, releases and other exculpatory

documents

Contracts and the Courts

Not all contracts have to be in written form, there are still valid binding oral agreements being met

Someone seeking to enforce an oral contract will have a much harder time doing so. The problem is trying to prove if there was a meeting of minds

There are some form of contracts that are not valid unless they are written down This concept is referred to as the statute of frauds This would include contracts that convey an interest in real

property; contracts for the sale of goods valued more than $500; contracts to answer for the debt of another; and contracts which will not be performed within one year of their creation

Parole Evidence Rule

If a written contract is complete as written, then then parole evidence rule dictates that the court will not consider items outside of the contracts such as prior oral understandings, interpretations, or other written material

Breach of Contract

A breach of contract occurs when one or more of the parties involved fails to fulfill the promises made in the contract An immaterial or partial breach of contract is

relatively minor or insignificant and generally will not cause the remainder of the contract to be rules invalid

A material or total breach usually excuses the injured party from fulfilling their promises and affords them the opportunity to sue for breach of contract

Judicial Remedies for Breach of Contract

A party who sues for breach of contract must request the particular form of relief desired This is known as election of remedies In most cases the party will seek to recover damages, and more

often than not money will make up the compensation Sometimes the court requires the breaching party to honor the

terms of the contract, either by completing the promised transaction or by fulfilling the promised act. This is known as specific performance

The court may also issue an injunction that directs a party to perform a particular act or prohibits them from doing so

The courts may also order a rescission that cancels the contract and restores all parties to their original positions, or order reformation which rewrites the contract to conform to what the court determines to have been the original intent of the contract