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LSDefine
Simple English definitions for legal terms
sealed contract
Read a random definition: right of action
A quick definition of sealed contract:
A sealed contract is an agreement between two or more parties that creates obligations that can be enforced by law. It can be a written document that serves as evidence of the agreement, but the term "contract" usually refers to the legal relations resulting from the agreement. In simpler terms, a sealed contract is a promise that must be kept, and if it is broken, there will be consequences.
A more thorough explanation:
A sealed contract is an agreement between two or more parties that creates enforceable obligations. It is called a "sealed" contract because it is signed and sealed by the parties involved. The seal is usually a wax or adhesive stamp that is affixed to the document to signify its authenticity.
For example, a company may enter into a sealed contract with a vendor to purchase goods or services. The contract would outline the terms of the agreement, such as the price, delivery date, and payment terms. Once both parties sign and seal the contract, it becomes legally binding.
Another example of a sealed contract is a real estate transaction. When a buyer and seller agree to the terms of a sale, they sign and seal a contract that outlines the details of the transaction, such as the purchase price, closing date, and any contingencies.
Sealed contracts are important because they provide a clear record of the agreement between the parties. If there is a dispute later on, the sealed contract can be used as evidence in court to prove the terms of the agreement.