Now Hiring Experienced Attorneys

Call Now

Call Now

Call Now

Blog

The Power of the Contract

Why The Lights Come On: The Power Of The Contract

For readers of our blog posts, the educational focus of our articles is not new: each blog is aimed at giving each and every reader a new insight into the wonder of the American legal system. While it is easy to hone in on its sometimes glaring shortfalls, we live in a free, safe, and thriving society where our money is safe in banks, most disputes are not settled by bloodshed, and our clan does not set our future.

The rule of law prevails because of our dedicated judges and attorneys. Listen to the daily world news and you will see how rare this is. Even with this system, and our lofty position as the freest place in the world, a good learning point is found in how we maintain this status -- consider the lowly contract.

There are a number of forms it may take, such as oral or written, simple or complex, but each day, every day our way of life is governed and ensured by the contract. Ninety nine plus percent of the time we do not even think about it because that is the way it is supposed to work.

The lights come on and the wall outlet works so you can power your computer and read these words because of a contract, such as that between you individually or your employer and the power company.

It is only where there is a breach of this contract, such as with non-payment of the monthly electric bill and threats to turn the power off that it is even apparent that your contract with the power company to provide power in exchange for payment of the monthly bill that this comes to have meaning.

In short, every aspect of every day of American life occurs by a contract in some regard. For this reason, as advocates and educators, Ciyou & Dixon, P.C. attorneys believe it is important for everyone to have a little bit of understanding of the contract and contract law. This blog post aims to provide just that.

At the broadest level, a contract is a promise between two people or entities to provide X good or service in exchange for a certain amount of dollars. Because goods move more readily between states and are more or less uniform, they are governed by the Uniform Commercial Code. Services, such as power, are governed by ordinary state contract law.

Beyond this, assuming services are at issue, contracts may be short or very lengthy. Sometimes there is no apparent reason for the terms and conditions. However, for the most part contracts apportion risk between the parties and define how disputes will be resolved. For instance, a common provision in a services contact may be an indemnity clause.

Take the ordinary building elevator as an example. If the owner of the building has an elevator built and maintained in the facility, it is likely that the service provider or seller of the elevator will indemnity and hold harmless the building owner from claims of passengers if the elevator fails and falls. While unlikely, this means that if this occurs and a building tenant is injured, and he or she sues the building owner, this owner will claim indemnity for any liability for the elevator from the elevator company.

The elevator company will, in turn make a claim against his or her insurance to pay out sums thereunder, under the elevator company’s insurance policy with the insurer. That is the complex way contracts work on multiple levels for each and every thing we encounter in daily life.

If the insurance carrier is unable to pay any claim or judgment, and/or the carrier refuses to pay or files for bankruptcy, then the liability falls back to the elevator company. If the company cannot pay, then the building owner is on the hook.

All of this is even more reason to understand what a contract does and does not do and insure against foreseeable risk, understanding there is always other risk, a cost of doing business.

As advocates, we at Ciyou & Dixon, P.C. hope you find this post useful in assessing the acts of daily life that are controlled by contract law. This powerful tool governs life, apportions risk, and allows us to operate independently of the legal system for the most part, but where there is a breach of contract, obtain relief through the courts.

We hope you find this introductory blog post on contracts informative and applicable in daily life. If so, it is has met it goal. This blog post is written by Bryan L. Ciyou, an attorney at Ciyou & Dixon, P.C. Ciyou & Dixon, P.C. attorneys practice throughout the State of Indiana.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Share on email
Email

We Listen & Care

Proven & experienced attorneys successfully advocating & resolving complex cases for over 25 years

Quick Contact

Need to talk now? Fill out the quick form below and we will contact you directly.
Blog Categories

Get In Touch

We're available to answer your questions 24/7.

Related Videos

Contact Us

Please fill out the form below and we will be in touch with you shortly.

Ciyou & Dixon, P.C., is a law firm located in Indianapolis, Indiana. We serve clients in six core practice areas: family lawappellate practicefirearms lawgeneral practicepersonal injury and criminal law.

Copyright © 2021 Ciyou & Dixon, P.C., Attorneys at Law. All rights reserved. This Site does not provide legal advice; please review the disclaimer for other limitations. Privacy Policy

Based in Indianapolis and founded in 1995, Ciyou & Dixon, P.C. is a niche law firm focused on successfully dealing with the complexities of divorce, high-conflict child custody and family law. Known for their ability to solve extremely complex situations with high quality work and responsiveness, Ciyou & Dixon will guide you every step of the way. The family law attorneys at Ciyou & Dixon, P.C. will help you precisely identify your objectives and the means to reach your desired result. In addition, this practice focus is augmented by the firm's other three core areas, namely appellate advocacy, civil practice, and firearms law. Life is uncertain. Be certain of your counselSM.

Indianapolis Divorce Attorneys, Ciyou & Dixon, P.C. of Indianapolis, Indiana, offers legal services for Indianapolis, Zionsville, Noblesville, Carmel, Avon, Anderson, Danville, Greenwood, Brownsburg, Geist, Fortville, McCordsville, Muncie, Greenfield, Westfield, Fort Wayne, Fishers, Bloomington, Lafayette, Marion County, Hamilton County, Hendricks County, Allen County, Delaware County, Morgan County, Hendricks County, Boone County, Vigo County, Johnson County, Hancock County, and Tippecanoe County, Indiana.