As a professional, I am excited to bring you an informative article on «what is a contract and its types.»
A contract is a legally binding agreement between two or more parties, where each party agrees to fulfill certain obligations. There are various types of contracts, and it is essential to understand each type to determine which one is best suited for a particular situation.
1. Express Contract: An express contract is a contract where all the terms and conditions are explicitly stated and agreed upon by the parties. The terms and conditions may be verbal or in writing.
2. Implied Contract: An implied contract is a contract where the terms and conditions of the agreement are not explicitly stated but are inferred from the conduct of the parties involved.
3. Unilateral Contract: A unilateral contract is a contract where one party agrees to do something in exchange for something else. The contract is only binding once the act has been performed.
4. Bilateral Contract: A bilateral contract is a contract where both parties agree to exchange something of value. Both parties are legally bound to fulfill their obligations under the contract.
5. Executed Contract: An executed contract is a contract where all the terms and conditions have been fulfilled, and the parties have completed all their obligations.
6. Executory Contract: An executory contract is a contract where one or both parties have not yet fulfilled their obligations.
7. Void Contract: A void contract is a contract that is not legally binding. The contract is deemed to be invalid from the outset.
8. Voidable Contract: A voidable contract is a contract that can be canceled by one or both parties. The contract is legally binding until it is canceled.
9. Unenforceable Contract: An unenforceable contract is a contract that cannot be enforced by the court of law. The contract may be invalid because it does not meet the legal requirements or violates public policy.
In conclusion, contracts are an essential part of any business transaction, and it`s crucial to understand the various types of contracts and their implications. Whether you`re negotiating a contract with a supplier or hiring a new employee, understanding the types of contracts will help you make informed decisions and protect your interests.