Early Retirement & Financial Independence Community

Early Retirement & Financial Independence Community (http://www.early-retirement.org/forums/)
-   Other topics (http://www.early-retirement.org/forums/f27/)
-   -   Do you read the contract? (http://www.early-retirement.org/forums/f27/do-you-read-the-contract-63771.html)

imoldernu 11-19-2012 07:08 PM

Do you read the contract?
 
Virtually everything we spend money on, whether goods or services, and many things that are free, involves a contract of some kind... either written or implied.

The simple question is: Do you read the contract?

pb4uski 11-19-2012 09:19 PM

Only for major transactions where I know the contract is unique (purchase or sale of house, auto, etc.)

I did read an umbrella insurance contract that I bought about a year ago which would have had a major gap in coverage in my state so I cancelled it and bought a contract from another carrier.

GrayHare 11-19-2012 10:03 PM

Based on the typos and errors, sometimes I wonder if the contract writers read them. For example, BoA's current credit card agreement claims "Cash rewards earned are truncated at the 100th decimal place." Umm, I don't think that's what they intended.

MooreBonds 11-19-2012 10:45 PM

Quote:

Originally Posted by GrayHare (Post 1249935)
Based on the typos and errors, sometimes I wonder if the contract writers read them. For example, BoA's current credit card agreement claims "Cash rewards earned are truncated at the 100th decimal place." Umm, I don't think that's what they intended.

Umm, I think their use of the term "100th decimal place" refers to .01, where
.1 = "tenth place"
.01 = "hundredth decimal place",
.001 = "thousandth decimal place", etc.

not "100 numbers to the right of the period".

growing_older 11-20-2012 12:33 AM

I read them. I've found errors often enough that I will keep reading them. Even with lawyers on both sides of the real estate closing, it's been common to find mistakes which in some cases would have cost me thousands of dollars. I check the mortgage company's calculations, too. They also make mistakes.

Walt34 11-20-2012 05:51 AM

Yes, always. I learned about that when I was doing fraud investigations.

Lots of times there was no fraud, just somebody didn't read the contract.

MichaelB 11-20-2012 06:02 AM

Quote:

Originally Posted by imoldernu (Post 1249905)
Virtually everything we spend money on, whether goods or services, and many things that are free, involves a contract of some kind... either written or implied.

The simple question is: Do you read the contract?

How does one read an implied contract?

mystang52 11-20-2012 06:11 AM

Sadly, the company often doesn't know their own contract. More than once I've had to explain the contract to the provider (naturally, where it obliged them to honor the contract terms). In one case, I had a service contract with my utility provider, and they initially refused to cover the cost of my blower fan. Why? Because it happened in the summer. I did not have, at the time. a service contract for my central AC. But the blower was covered, and nowhere was it excluded if used during the summer.
It took 5 months, and intercession by my Congressman, before they credited my bill.

donheff 11-20-2012 06:13 AM

Never.

DFW_M5 11-20-2012 06:20 AM

While I think its important to understand your obligations, most of these contracts that you are probably referring to are non-negotiable, so I will simply scan those types for high level comprehension.

REattempt 11-20-2012 08:09 AM

Quote:

Originally Posted by GrayHare (Post 1249935)
Based on the typos and errors, sometimes I wonder if the contract writers read them. For example, BoA's current credit card agreement claims "Cash rewards earned are truncated at the 100th decimal place." Umm, I don't think that's what they intended.

Quote:

Originally Posted by MooreBonds (Post 1249938)
Umm, I think their use of the term "100th decimal place" refers to .01, where
.1 = "tenth place"
.01 = "hundredth decimal place",
.001 = "thousandth decimal place", etc.

not "100 numbers to the right of the period".

Umm, I think that is what GrayHare was saying...they meant one thing and said another; The 100th decimal place is not what they intended.

The "100th decimal place" refers to 100th digit after the "."
1st decimal place, 2nd decimal place, ......100th decimal place...

The "100ths decimal place" refers to the second place after the "."
10ths decimal place, 100ths decimal place, 1000ths decimal place...

That is the way that I learned it...and Google tends to confirm my understanding:
https://www.google.com/search?q=deci...w=1311&bih=661

To quote REWAHOO "Words is Hard."

NW-Bound 11-20-2012 08:17 AM

I do read contracts, but most often without a critical eye of a lawyer. I might not see the implications or ramifications behind a certain clause.

Quote:

Originally Posted by GrayHare (Post 1249935)
Based on the typos and errors, sometimes I wonder if the contract writers read them. For example, BoA's current credit card agreement claims "Cash rewards earned are truncated at the 100th decimal place." Umm, I don't think that's what they intended.

Quote:

Originally Posted by MooreBonds (Post 1249938)
Umm, I think their use of the term "100th decimal place" refers to .01, where
.1 = "tenth place"
.01 = "hundredth decimal place",
.001 = "thousandth decimal place", etc.

not "100 numbers to the right of the period".

Would it be less ambiguous if they say "Cash rewards earned are truncated to the penny"?

ERD50 11-20-2012 08:41 AM

Depends. Most of these contracts are so long and so boilerplate that I pretty much go on faith - if this company tried to screw me, it would be all over the internet.

Of course for a large and/or unique transaction, a reading may be in order.

The last thing I recall reading carefully was the "Arbitration Agreement" when purchasing a vehicle. I posted about this before - I was able to decline one, the other they insisted and I caved, the third was not so terribly bad, so I caved.

I doubt many people read or understand those agreements, I do not think people should sign away their rights so easily, esp when everything is in the car dealer's favor.

-ERD50

HighRoller 11-20-2012 09:02 AM

Yes (but sometimes very fast) Depends on the company/institution I'm dealing with

ERhoosier 11-20-2012 09:07 AM

Contracts?????

Lou Brown pee's on Dorne's papers (Major League) - YouTube

Tyro 11-21-2012 04:20 AM

Yes, always. Having taken several semesters in contract & real estate law, and a spouse who was formerly a contracts paralegal, we tend to read everything (though we know many lawyers who don't). As with anything, with years of practice, one can get pretty good at blasting through the boiler plate and spotting the fine print stuff.

Tyro

imoldernu 11-21-2012 05:45 AM

Quote:

Originally Posted by MichaelB (Post 1249954)
How does one read an implied contract?

Perhaps that should have read read and understood, but an "Implied Contract" is a legal term that does exist, and may cover many situations that could cause problems for those who do not understand the meaning.

I am reminded of a situation where a neighbor had a signed contract for some home renovations where the specifications were specifically delineated. As the work progressed, some obvious changes were required to make the renovations work. At the completion, the contractor presented a bill that was 50% higher than the contract price. My neighbor lost the court case because of the "implied contract" that he didn't understand.

Part of the explanation from Wiki.
Quote:

An implied-in-fact contract (a/k/a "implied contract") is a contract agreed by non-verbal conduct, rather than by explicit words. As defined by the United States Supreme Court,[1] it is "an agreement 'implied in fact'" as "founded upon a meeting of minds, which, although not embodied in an express contract, is inferred, as a fact, from conduct of the parties showing, in the light of the surrounding circumstances, their tacit understanding."

Although the parties may not have exchanged words of agreement, their actions may indicate that an agreement existed anyway
Implied-in-fact contract - Wikipedia, the free encyclopedia

MichaelB 11-21-2012 06:05 AM

Quote:

Originally Posted by imoldernu (Post 1250305)
Perhaps that should have read read and understood, but an "Implied Contract" is a legal term that does exist, and may cover many situations that could cause problems for those who do not understand the meaning.

Got it. Still wondering how you read it. As for understanding, some of this stuff is easier to understand if you don't read it than if you do.

MDJO 11-21-2012 06:28 AM

No

DFW_M5 11-21-2012 07:13 AM

Quote:

Originally Posted by MichaelB (Post 1250310)
Got it. Still wondering how you read it. As for understanding, some of this stuff is easier to understand if you don't read it than if you do.

Also, some contracts can be verbal agreements.


All times are GMT -6. The time now is 02:23 AM.

Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.