Common Legal Mistakes in Transactions

Clearly,  many of us go about our lives without making legal mistakes. Fortunately, many of us never incur legal problems. However, that should not create a false hope in our mind to ignore the fact that legal issues can arise and we have the power to avoid legal mistakes in our transactions, whether routine or once in a lifetime.

It is not very different than a person who has a spare tire in his/her vehicle, but has hardly used the tire or never used it. It makes good sense to periodically have our tires checked for air [and certainly, the spare tire]; in fact, tire manufactures and safety proponents recommend replacing tires after a certain period of time because the rubber and material that comprise tires wear out, even if there is still plenty of tread remaining on a tire [some recommend replacing a tire after six years, while others make the recommendation after eight years).  The same analogy can be made for purchasing home or renter’s liability and fire insurance. Some of us have purchased fire insurance for 10, 20 or even 30 years, yet never had the misfortune of having a fire; yet, there are very few of us  who do not have fire insurance.

If we do nothing to prevent problems and/or fail to realize the expectations in our daily transactions these situations can result in legal mistakes at best; but at worst, they can be the basis of a lawsuit. For example, one may forget the critical importance of having a detailed written contract when having a home remodeled, or when entering into other verbal agreements. However, enforcing our agreements and realizing our goals in many of our transactions can be a challenge if adequate consideration is not given to the scope and purpose of our agreement(s) and the unintended consequences. Moreover, it is hardly a mistake for a business, vendor, contractor, or sales person with whom one enters int a transaction to set forth the least amount of information. Whether this is deliberate or simply a result of being in a hurry or carelessness, we can describe the result as a legal mistake. Sadly, there can be one or more common omissions that are critical to an agreement, whether verbal or written. In this regard, you should consider the importance now and in the future to have a transaction spelled out in full in a written agreement, particularly crafted both in your favor [rather than the third person or business] and with the most number of details as possible.

When you contemplate or are about to enter into a transaction or an agreement, the first step is to have a clear plan of action. This includes making an itemized list of what you desire, along with what you expect to be performed, each of which to be included in the transaction, oral agreement or written contract. Then, you should request each and every one of those important items, facts, services and the steps or process to be used, to each be spelled out in writing, thereby becoming the important content of the agreement. From a legal standpoint, these are often called specifications, details, technicalities, terms and conditions, etc.  Avoiding legal mistakes in the transactions we enter into can not only save us money, but avoid disappointments and heartache.

 

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