The different types of contracts include contracts under seal, express contracts, implied contracts, executed and executory contracts, bilateral and unilateral contracts. The law defines a contract as a binding agreement between two or more parties that is enforceable in the court of law. In the event of a dispute between parties, the court enforces the contracts as per the terms agreed upon unless grounds that bar enforcement emerge.Continue Reading
A contract under seal is a traditional type of contract that contained a stamped seal that made it an enforceable legal document. The seal consent from parties that the agreement entailed legal consequences. Where parties agree to form an express contract, they state the terms orally or in writing. The offeree accepts written or a verbal offer that is definite.
An implied contract arises when there is agreement and intent to promise, not expressed in words. It, therefore, means that an implied contract bounds when there is an act or conduct from a party. An executed contract demands that nothing is left undone by either party, The contract ceases to exist when both parties have fulfilled their obligations as per the contract. In an executory contract, either of the parties fulfills some obligations in future.
A bilateral contract is a contract between two entities that promise to perform a certain act on each other while a unilateral contract involves a promise made by one party. A unilateral contract becomes enforceable after the offer has been accepted.Learn more about Managing a Business