A commutative contract is a legally binding agreement between two or more parties in which obligations and benefits are mutually exchanged. This means that each party involved in the contract agrees to provide something of value to the other party in exchange for something of equal value. The terms and conditions of the contract are agreed upon by all parties involved and are legally enforceable.
A commutative contract is a type of contract where both parties agree to exchange something of equal value.
Examples of commutative contracts include buying and selling goods, renting property, and lending money.
Yes, a commutative contract is legally binding as long as both parties agree to the terms and conditions.
Yes, a commutative contract can be verbal, but it is always recommended to have a written contract to avoid any misunderstandings.
If one party breaches a commutative contract, the other party can take legal action to enforce the contract or seek damages.
Yes, a commutative contract can be modified if both parties agree to the changes and the modifications are made in writing.
In most cases, a minor cannot enter into a commutative contract without the consent of their legal guardian.
The statute of limitations for a commutative contract varies by state, but it is typically between 3-6 years.
A commutative contract can be terminated early if both parties agree to the termination and the terms of the termination are outlined in writing.
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This glossary post was last updated: 4th May 2024.
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