Can you imagine missing out on $11 billion?
Caitlin Sanchez was 12 years old when Nickolodeon chose her to be the voice of their kids series Dora the Explorer. Nickelodeon gave the young voice actor a contract offer and told her she had less than 30 minutes to sign it.
Not knowing any better, Caitlin signed the contract, agreeing to be paid $5,115 for each episode. What she didn’t know was that the hit series television show would grow to earn over $11 billion worldwide.
Thankfully, Caitlin successfully sued Nickolodeon for not following good faith and fair dealing contract laws. However, her settlement award was only $500,000, which is a fraction of what she should have been paid.
Unfortunately, stories like this happen all the time. If you don’t want to sign your life away with a bad contract, we can help.
Read on to learn how to protect yourself when you’re signing different types of contracts.
Tips for Reading Loan Contracts
First, let’s look at what you should do when you’re reading contracts for personal loans. For finance contracts, the implied covenant of good faith and fair dealing states that both parties will receive benefits from the contract. However, since not all contracts are equal, you’ll need to take as much time as you need to review all of the loan details before signing.
For instance, you’ll need to read all of the clauses that allow the lending institution to make amendments. The contract should state that you have to provide written consent for any future amendments to be valid. If the lender fails to uphold their end of the agreement bad faith statutes give you the power to retaliate legally.
What to Know Before Signing a Contract for Employment
Next, good faith and fair dealing contract laws also extend to employment contracts. If you’re starting a new job, or your employer revises your current employee handbook, you’ll want to review the termination clauses. The termination clauses state under what conditions the employer’s legally allowed to fire you.
Next, double-check the additional employment limitations to see if you know the correct steps to take if you’re getting a second job. Finally, make sure your employer’s including the statutory minimum when it comes to holiday and leaves benefits.
How to Read a Lease
Leases are another type of contract that you should take your time reading before you agree to anything. Here are a few aspects of your lease you should pay extra close attention to:
- Rent amount
- Late payment fees
- Subletting rules
- Early termination stipulations
Finally, find out how far in advance you have to notify the landlord if you decide to renew, or nonrenew your lease. While certain lease contracts will default to a month to month agreement, others require 60-90 days of notice.
Good Faith and Fair Dealing
It’d be great if every contract followed good faith and fair dealing contract laws. However, since there are dishonest individuals out there, you have to know how to protect your rights. Never let someone rush you through reading a contract, and make sure you fully understand everything you’re signing.
If you think you’re the victim of a bad faith contract, reach out to a legal professional today to see what you’re options are. For more ways to stand up for yourself, explore the rest of this site.