Saturday, November 21, 2009

Contracts 101

Some people have asked, if the fee-sharing contract Jon had with Hailey and Michael Lohan wasn't signed, it wasn't a contract, right? Well, maybe.

Basic contract law says that contracts must have:

1. an offer--I tell you I will give you $100 if you paint my house
2. acceptance--"I accept!" the job to paint my house
3. consideration--something you are getting for the job...something has to change hands and people's positions have to change. You can't contract for many things because there is no consideration. In this case, the consideration is $100. In the case of the fee-sharing, consideration may be an issue as well.

Now we have a contract to paint my house!

As you can see, there is no requirement there be a signature on the dotted line. But, a signature on the dotted line is one way to show you accepted the offer. And with the fee-sharing agreement, we have absolutely no evidence Jon's "offer" to share his fees was ever "accepted" by anyone.

If there's no acceptance, there's no contract. If there's no contract, your lawsuit is sunk.

2 sediments (sic) from readers:

Debbie said...

Word today is that most issues have been settled in the meeting between Jon and Kate. Jon was quoted as saying the lawyers did all the talking. Is that normal? I thought when you had arbitration it is you and ex and arbitrator working things out, but then I have never been through it before. Also heard Jon was not contesting Kate getting "primary custody" Any insite on that or what it means to have primary custody. That would not give her the power to film the kids would it? Could the arbitrator have any say in kids filming? Sorry so many questions. Love love love this blog and you are so helpful!

Debbie said...

Word today is that most issues have been settled in the meeting between Jon and Kate. Jon was quoted as saying the lawyers did all the talking. Is that normal? I thought when you had arbitration it is you and ex and arbitrator working things out, but then I have never been through it before. Also heard Jon was not contesting Kate getting "primary custody" Any insite on that or what it means to have primary custody. That would not give her the power to film the kids would it? Could the arbitrator have any say in kids filming? Sorry so many questions. Love love love this blog and you are so helpful!

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