What happens when important terms are missing from a contract in Tennessee?

Nashville, TN – Sometimes poor drafting or other issues can cause a contract to be missing crucial pieces of information that are necessary for its enforcement. This can be problematic because a contract requires that specific terms will be enforced in the event of a breach or other contingencies. Because of this potential problem, courts have found ways to supply crucial terms or make other arrangements to achieve an equitable result, especially if the contract deals with a unique item such as real property. 

Industry customs

Certain industry practices have been used over and over again, and they demonstrate what is generally accepted behavior in agreements. It is possible that the court will look to the practices of similar people within the industry and the parties themselves. This type of evidence will show how the contract would likely be handled in a comparable situation in the same industry or product. 

Statutory law

There are various statutes in each state that deal with contract formation and contract law. One of the most common statutes used in contract disputes is called the statute of frauds. This applies to certain types of contracts, and the statute has a number of different rules that determine how the contract should be read, whether it should be enforced, and how certain conflicts and problems are handled. The jurisdiction may also have additional statutes that deal with supplying a missing term based on evidence and practice. 

Prior cases and appellate decisions

One the main things that lawyers do during their research is to try to find prior cases that have relevant and similar disputes to the one that they are handling. A relevant case may give the court handling the dispute persuasive authority regarding how they should rule. In the case of missing terms in a contract, the case may either describe what reasoning should be used to supply the term or give a process to decipher a specific term that should be substituted. 

Rescinding the contract

If a contract is simply too vague to be enforced due to missing terms, it is possible that a court will rescind the contract, or act as if it does not exist. In the event of rescission, neither party will be required to do anything in accordance with the document, and they are free to move on or try to make another deal. This will most likely be the remedy if the court sees no other way to solve the dispute or figure out the contract’s terms. 

Meeting with a local business attorney

The Law Office of George R. Fusner is available to help businesses and individuals who need help with business law in the Nashville area. Anyone who needs assistance can contact their office to receive more information. 

Firm contact info:

The Law Office of George R. Fusner

7104 Peach Court, Brentwood TN 37027

615-251-0005

gfusnerlaw.com