CLU Agents' Legal Issues provides a brief general overview of a complex area of law and neither the author nor Rough Notes intends it to be taken as legal advice for any specific legal problem. For a specific problem, consult legal counsel that understands the law of insurance agencies, and provide all the details. Actually, contracts only look easy. The trend these days is to make them look even easier, and thus they become even more misleading. The purpose of this article will be to take a look at the tricks involved with contracts.
Contract law is usually state law rather than federal law.
There are exceptions, such as where the government hands out federal contracts and federal money. However, the law of contracts has largely been left to the states and local judges to develop, and so it will vary to some extent from place to place. Contract law used to be almost completely judge-made law. There was no need, people thought, to prepare formal rules about something that simply involved a person's word. His word was his bond, as the saying went.