Understanding Contracts

Описание: Good labor relations also require an understanding of the concepts of both formal and informal agreements. Each of these legal concepts means something slightly different, and all of them can affect employment contracts.

An express contract is a transaction in which the agreement between two parties is specifically stated, whether orally or in writing. Generally, in employment and labor relations, any express contracts should probably be in writing due to the complex nature of the relationships between individuals.

An implied contract exists when “the parties form an agreement from their actions rather than from a specific oral or written agreement.” In many cases, managers and supervisors don’t even realize that they have created an implied contract with their employees, but in fact have done so, and as a result cost the company significant amounts of money.

Finally, a quasi-contract is a contract that doesn’t really exist, but a court may create it to avoid an unfair situation. A quasi-contract is a court-ordered implied agreement to prevent one party in an action from benefiting at the expense of another party.