Contracts: How They Effect Everyday Life

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Contracts: How They Effect Everyday Life
BUS 311 – Business Law I
Prof. Katheryne Rogers
January 6, 2012

Most people in society think that contracts are pointless and unnecessary. Contractual law is not high on society’s list of things to study. What society does not realize is that contracts bind a majority of the decisions that they make on a systematic basis. In this paper I will make evident the effectiveness of contracts and how they are such an immense aspect in society’s everyday life. This paper will demonstrate the practicality of contracts and how they influence and add to everyday life. I am also going to show what would happen if we did not have any contract regulatory resolutions made. Without contracts; the law would not be able to make a verdict as to who to rule for if something were to come up; which transpires daily all over the world. The definition of a contract is basically an agreement between two or more persons. This explanation integrates countless things. Almost everyone in today’s society is a consumer. Just by being a consumer you make choices based on issues that have been put in place by contracts. To show how crucial contracts are; a consumer awakens in his home; which he purchased from K.B Homes. K.B home is a company that is well known for designing homes. The consumer’s house was built by contractors. By differentiation a contractor is an individual or firm who contracts to build things. Plummer’s, electricians, carpenters, and painters are all samples of contractors that were intricate in making the consumer’s fantasy house become real. K.B Homes does not have a contract with every type of contractor that is involved with building the house. They go to a general contractor and have one contract with the general contractor. The other specialty contractors go through the general contractor directly for any questions or concerns they have. In most cases the general contractor hires all the different types of contractors he will need to complete the construction of the new home. Then the consumer comes in with a price they are willing to pay for the home, that price then becomes the obligatory contract that K.B Homes will build the house for. K.B Homes uses certain trademarks to delineate who they are and these trademarks are guaranteed to them by a trademark contract with the United States of America. A trademark is any word, symbol or name that is used in commerce to recognize and differentiate the goods from one manufacturer to another. By registering a trademark the purchaser is able to securely say that it is K.B Homes that they are conducting business with and not some other company who is pretending to be K.B Homes. When the home is finished being built then the individuals that are purchasing the home bring in a third party in to the arrangement. This third party is known as the lender. The lender enters into the arrangement between the purchaser and K.B Homes because they are loaning the buyer the money to buy the house. The buyer will then be accountable for remunerating the lender back over the next thirty years at a fixed interest rate; the amount of money they borrowed; this is known as a mortgage contract. A mortgage contract contains the allocation of an interest in land as security for a loan or another responsibility. The most communal technique of financing in real estate transactions is a mortgage contract. The mortgagor in this specific situation is K.B Homes; they are the individual party that is transferring the interest in land. The mortgagee; which is the lender that loaned the home buyer the money to purchase the home will provide the purchaser security that as long as they pay their mortgage they cannot revoke the contract. Most mortgages are paid in installments that include a payment on the principle amount that was borrowed as well as having the interest comprised. Now that the consumer has purchased their home they are going to need to buy items for...
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