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The Ironclad Contract
and Other Legal Myths
1. The Ironclad Contract
The only ironclads
were the Merrimack and the Monitor. There are no ironclad contracts.
A contract is only as good as the word of the parties. That does
not mean that a contract is useless. Quite the contrary, a written
contract assures that there is some proof of exactly what the parties
meant and narrows the issues in the event of a lawsuit.
2. It Is Against The Law To Break
A Contract
On the contrary,
you have the privilege of breaking your contracts. However, the
party that breaches must pay the other party any damages that the
other party suffers as a result.
3. The Three Day Right of Rescission
True or false? You
have a three day right of rescission whenever you buy an item? False,
except for in home solicitation and mortgage refinances when required
by federal law.
4. You Can Always See the Lawyer
After You Sign the Contract
Real estate lawyers
especially see a lot of this. People sign a real estate contract
for sale and purchase then bring it to their lawyer to review. After
you sign it, it is too late. You already have a contract.
5. Attorney's Fees Clauses in
Contracts Are Always a Good Thing
They may in some
cases invite litigation. If you are the party with the deep pockets,
then you may not want an attorney fees clause. Even if you have
one, you may never collect the fees. However, your opponents will
always collect theirs when they win.
6. Judges Punish People in Commercial
Cases
Commercial cases
are about compensation for losses sustained. They're rarely about
punishment. The judge is not going to put the other party out of
business or do anything else, except give you a money judgment.
7. Bad Things Will Happen To You
If You Don't Pay a Judgment
They might but the
things that happen do not include being held in contempt of court
or imprisonment. We don't have a debtor's prison in Florida. The
judge won't hold the other party in contempt of court. There are,
of course, exceptions in family law, with injunctions, etc.
8. There Is Such a Thing As a
Simple Will
No will is ever
really simple. For example, the description of a mobile home on
a rented lot as "my real property" has caused months of
litigation. The reason being that the mobile home was personal property.
The real property under it was leased.
9. Lawyers Are Expensive
Not seeing a lawyer
is much more expensive. For example, $5,000 to foreclose a second
mortgage when $250.00 to a lawyer for review of the sales documents
and contract would have avoided the entire expense.
10. Anyone Can Write a Contract
or Will
I used to
believe this was true, but I've been proven wrong over and over
again. Mean what you say. Say what you mean. Spell it out.
Harry Thomas Hackney,
P.A.
Counselor-At-Law
3900 Lake Center Drive, Suite A1 ~ Mount Dora, FL 32757
Telephone: (352) 735-6500 ~ Facsimile: (352) 735-6501
Email: hackneypa@harryhackney.com
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