Classification of Contracts Essay

This is the most common yep for the causes of law suits. A contract differs from an agreement because a contract must be an agreement, but an agreement does not have to be a contract (Shaft & Shaft, 2010). A contract is an agreement with a specific term with two or more persons in which there is a promise to do something in return for a benefit known as consideration. An agreement is when two people come to an arrangement about a particular issue, which include obligations, rights, and duties (Agreement Law Definition, 2006).

There is not a big difference between a contact and an agreement. A contract is more aroma and more securely presented than the terms that are in an agreement. A contract is an unenforceable agreement when the law requires it to be in a particular form and it is not. It can also be made enforceable by changing the form to meet the requirements of the law. An agreement that is not enforceable in a court of law will not come within the definition of a contract (Shaft & Shaft, 2010).

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An enforceable agreement would be a avoidable contract, because of the circumstances or the capacity of a party, one or both of the parties may set it aside (Shaft & Shaft, 2010). An express contract is an exchange of promises that both parties agree to be bound are declared either orally or in writing, or a combination of both (Express Contract). The items that must be expressed in order to have an express contract, is the intention to contract and the terms of agreement stated orally or written (Shaft & Shaft, 2010).

A seal contract is executed with formal signatures and they must have a seal on the document where to sign or L. S. Following it (Shaft & Shaft, 2010). Recognizable is a second type of formal contract, there are obligations entered into before a court, by which people acknowledge; to do an act that is required by law (Shaft & Shaft, 2010). A person pledges to perform a specific act or to subscribe to a certain course of conduct.

Business contracts are written rather than verbally said so there are no disputes that arise between the parties as the terms of the contract. If a contract was written then there would be no disputes because everything would be stated in that written contract. The difference between an executor and an executed contract an executor contract will be described. A executor contract is a that needs yet to be fully executed or performed, which means that the remains need to be carried into operation or effect (Executor).

An example of this is when a person decides to work for someone for one year in exchange for a salary of a certain amount per month; this is classified as an executor contract because the person has yet to work the full year (Shaft & Shaft, 2010). An executed contract is a contract that has been fully performed by everyone in the contract (Executed Contract). An example of this contract would be if a shop sells and delivers a cage for a certain amount of dollars and the purchaser pays at the time of the same (Shaft & Shaft, 2010).

Are contracts the result of mutual promises by both parties? No, unilateral contracts are when an act is done in consideration for a promise and this is only a one sided promise. A bilateral contract is a mutual exchange of promises to perform some future acts (Shaft & Shaft, 2010). This type of contract does not make any promises, just performs the act. Majority of the contracts are bilateral because the law says this type of contract can be formed when performance is started Shaft & Shaft, 2010).