Pennsylvania Contract Law Key Terms

Ensure the legality of your contracts and agreements by learning Pennsylvania contract law terms
By Apryl Beverly Properly written contracts are considered legal documents in every state. Learning Pennsylvania contract law key terms can help you learn how to draft legal contracts, what should be included in contracts to protect your business assets, and how to legally terminate business contracts when doing business in Pennsylvania.

Pennsylvania contract laws establish guidelines on how to enforce the terms of written and in some cases, oral agreements between companies and people. Because promises made in a contract can be enforced by Pennsylvania courts, it’s important for businesses to have some knowledge about Pennsylvania contract laws key terms.

Assignment of contract

Under Pennsylvania contract law, an assignment of contract allows original contract parties to re-assign their rights and responsibilities as identified in the contract to other parties. The individual who re-assigns responsibilities is the assignor, while the individual receiving the new rights and responsibilities is called the assignee.
Try:  Learn more about assignment of contract at FindLegalForms.

Plain Language Consumer Contract Act

Businesses who participate in contracts with consumers are required to comply with the terms of the Pennsylvania Plan Language Consumer Contract Act. This Act requires lenders, retailers and landlords to draft consumer contracts that are easy to understand and read.
Try:  Find out more about the requirements of this Pennsylvania Act at FindLaw.

Rescission

The terms and conditions of a Pennsylvania contract, as in most states, are the items to which all parties agree. In many cases, the courts have the jurisdiction to return parties to the state they would have been in had the contract never been signed. This is referred to as rescission. Typically there is a rescission period or a specific timeframe in which parties can lawfully void the terms and conditions of an existing contract.
Try:  Read more about rescission at Weblocator.com.

Duty of good faith

Duty of good faith is an implied duty under Pennsylvania contract law. This is defined as the court's implied guidelines that all parties engaging in agreements and contracts will act in good faith and in the best interest of themselves and other parties.
Try:  Find out more about duty of good faith at Maxwell S. Kennerly, Esquire.

Exculpatory clauses

Exculpatory clauses are contract terms that release a party from liability in the event another party to the contract engages in acts that violate the terms and conditions of the contract. These clauses are not favored by Pennsylvania contract law.
Try:  Find out more about exculpatory clauses at Somerset Legal Journal.

Statute of limitations

Pennsylvania law established a limited amount of time during which lawsuits can be filed claiming injury. This specific timeframe is referred to as statute of limitations. Pennsylvania law states that claims alleging breach of contract must by filed within four years of the alleged breach. A breach of contract is a party's failure to comply with the terms of an agreement or contract.
Try:  Find out more about statute of limitations at PA Statute of Limitations.