Sportslaw Jargon: Contracts

A contract is an enforceable agreement between two or more persons to perform or refrain from performing a specified act. A contract is made when one party submits an offer that is accepted by the other. Generally, the parties must be mentally sound, of legal age and acting with free will. A contract must not have an immoral or criminal purpose or be against public policy.

A contract must involve consideration--something of value-- given by each party to the other. A contract is terminated when its terms have been fulfilled or when special circumstances make fulfillment impossible or unlawful. The law provides several remedies for breach (failure to carry out the terms) of a contract, most after the award of money damages for losses incurred. By law, certain types of contracts must be in writing.

Personal Service Contracts

Conracts in sports law generally fall into the category of personal services contracts. Such contracts involve the time and effort of a party engaged in performing an identifiable task, rather than furnishing a good or real property. Pesonal services contracts are performed by a professional individual on a temporary or occasional basis including an athlete or entertainer.

If such a party breaches his or her contract, the other party cannot compel that breacher to complete performance. Such a remedy, known as specific performance, is not available in personal service cases as it would violate the U.S. Constitution's prohibition on slavery or involuntary servitude (13th Amendment). Under English law, the rule is the same (See Lumley v. Wagner, 42 Eng. Rep 687 (Ch. 1852).

Sports teams will sue players who "contract jump" to another team while still obligated to perform for the Plaintiff team. Plaintiffs often sue for injunctive relief (to prevent the athlete from playing on another team) and monetary damages. However, to have the player enjoined from playing on another team, the plaintiff must prove that money damages alone are inadequate, the losses of the player to the team is incalculable as he is "unique and extraordinary" and the athletes' contract contains a valid express negative covenant. See Philadelphia Ball Club Ltd. v. Lajolie, 51 A. 973 (Pa. 1902) and Madison Square Garden Corp. v. Braddock, 90 F.2d 924 (3d Cir. 1937).