Free Consumer Contracts FAQs | Free Consumer Contracts Legal FAQs

My Mechanic Mentioned A Service Contract, What Is That?

Tue, 29 May 2007 21:19:00 GMT

Many vehicle dealers and others sell optional service contracts. Vehicle manufacturers or independent companies issue these contracts. Not all service contracts are the same; prices vary and usually are negotiable. To help decide whether to purchase a service contract, consider:

The cost.
The repairs to be covered.
Whether coverage overlaps coverage provided by any other warranty.
Where the repairs are to be performed.
Procedures required for filing a claim, such as prior authorization for specific repairs or meeting required vehicle maintenance schedules.
Whether repair costs are paid directly by the company to the repair shop or whether you will have to pay first and get reimbursed, and
The reputation of the service contract company. This can be found by checking with your state Attorney General`s office or local consumer protection agency.

What Is A Service Contract?

Tue, 29 May 2007 21:19:00 GMT

Service contracts that you may buy with a new car provide for the repair of certain parts or problems. These contracts are offered by manufacturers, dealers, or independent companies and may or may not provide coverage beyond the manufacturer`s warranty. Remember that a warranty is included in the price of the car while a service contract costs extra. Before deciding to purchase a service contract, read it carefully and consider these questions:

What`s the difference between the coverage under the warranty and the coverage under the service contract?
What repairs are covered?
Is routine maintenance covered?
Who pays for the labor and / or parts?
Who performs the repairs? Can repairs be made elsewhere?
How long does the service contract last?
What are the cancellation and refund policies?

What Is A Sales Contract?

Tue, 29 May 2007 21:19:00 GMT

This is an important consideration for purposes of Article 2. In order to determine whether Article 2 applies to a transaction, you must first determine whether a contract exists. Under the U.C.C., a contract need not be formed with any special formality. A contract may be formed in any manner sufficient to show agreement between the parties. This includes the conduct of the parties.

A contract usually begins by one person making an offer to another. The other person accepting the offer completes the contract. If the contract is supported by consideration, a contract is formed. Consideration, in the context of a contract usually means, money paid, or a promise to do something.

For example, If Jack asks Jill if she would like to buy his car for one hundred dollars, an offer has been made. If Jill agrees to the deal, then Jill has accepted the offer. The one hundred dollars serves as the consideration. The transaction would create a legally enforceable contract under the Uniform Commercial Code. Since the contract involved a transaction involving the sale of a good (the automobile), the transaction is governed by Article 2.

Do I Enter Into A Contract Every Time That I Buy A Product From The Store?

Mon, 04 Jun 2007 21:51:22 GMT

Yes. The next time that you buy an apple from the market, you have entered into a contract. The store is making an offer buy placing the apple for sale. When you take the apple to the cashier and pay, you have accepted the store`s offer to purchase the apple.

Does A Contract Have To Be In To Be Enforceable?

Tue, 29 May 2007 21:19:00 GMT

No, a written contract is not required to create all contracts. The U.C.C. implements something called The Statute of Frauds (S.O.F.). The S.O.F. requires that certain contracts be recorded in writing in order to be enforced. The S.O.F. has been implemented to reduce and prevent fraud in contracts. The S.O.F. requires that all contracts for the sale of goods over five hundred dollars be in writing to be enforceable.

For example, if you orally agree to buy your neighbor`s car for six hundred dollars then later decide that you no longer want to buy the car, you can do so. To be enforceable, the contract must be in writing because the sale is for six hundred dollars, an amount above the S.O.F.`s five hundreddollar writing requirement. On the other hand, if you orally agree to buy your neighbor`s car for three hundred dollars and later decide to back out, you may be liable to your neighbor under the contract.

What About Service Contracts?

Thu, 20 Dec 2007 08:02:08 GMT

A service contract is an optional agreement for product service that customers sometimes buy. It provides additional protection beyond what the warranty offers on the product.

Service contracts are similar to warranties in that both concerns service for a product. However, there are differences between warranties and service contracts.

Warranties come with a product and are included in the purchase price. In the language of the Act, warranties are part of the basis of the bargain Service contracts, on the other hand, are agreements that are separate from the contract or sale of the product. They are separate either because they are made some time after the sale of the product, or because they cost the customer a fee beyond the purchase price of the product. The Act includes very broad provisions governing service contracts that are explained in the following sections.

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