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Simple English definitions for legal terms
substituted contract
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A quick definition of substituted contract:
A substituted contract is an agreement between two or more parties that replaces a previous agreement. It is a legally binding document that creates obligations that can be enforced by law. A contract can refer to the series of actions taken by the parties, the written document that records the agreement, or the legal relations resulting from the agreement. In simple terms, a contract is a promise that must be kept, and a substituted contract is a new promise that replaces an old one.
A more thorough explanation:
A substituted contract is a type of contract that replaces an existing contract with a new one. It occurs when the parties involved in the original contract agree to replace it with a new one that has different terms and conditions.
For example, let's say that John and Jane enter into a contract for John to sell Jane his car for $10,000. However, before the sale is completed, John decides that he wants to keep the car and offers to sell Jane a different car instead. If Jane agrees to this new arrangement, they have entered into a substituted contract.
Another example of a substituted contract is when a contractor agrees to perform a different type of work than what was originally agreed upon in the contract. For instance, if a contractor was hired to build a house but later agrees to build a garage instead, this would be a substituted contract.
Overall, a substituted contract is a way for parties to modify an existing contract without having to cancel it altogether. It allows for flexibility and can be beneficial for both parties involved.