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Simple English definitions for legal terms
blanket contract
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A quick definition of blanket contract:
A blanket contract is an agreement between two or more parties that creates obligations that can be enforced by law. It can refer to the series of actions taken by the parties, the written document that records the agreement, or the legal relationships resulting from the agreement. In simple terms, a contract is a promise or set of promises that the law recognizes as a duty, and if broken, can be remedied.
A more thorough explanation:
A blanket contract is a type of contract between two or more parties that creates enforceable obligations. It is called a "blanket" contract because it covers a range of goods or services, rather than a specific item or project.
For example, a company may enter into a blanket contract with a supplier to purchase all of their office supplies for the year. This means that the company can order as many pens, paper, and other supplies as they need, up to a certain limit, without having to negotiate a new contract each time.
Another example of a blanket contract is a retainer agreement between a lawyer and a client. The client pays a set fee upfront, and the lawyer agrees to provide legal services as needed throughout the year.
Blanket contracts can be beneficial for both parties because they provide a level of predictability and stability. The parties know what to expect from each other and can plan accordingly.