A contract is a written agreement between parties which outlines the promises between them, held enforceable by law.

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Types of Contracts

Contract under seal: A contracts with the requirement of a seal which recognises the acceptance of the agreement and the consequences if there is a breach in the contract.

Express Contract: A contracts which is written or orally spoken in which both parties have accepted.

Implied Contract: A contract based on the intention of an agreement on which is based on the certain circumstances.

Executed Contract: A contract signifying that both parties have fulfilled their agreement in previous contract and that contract is ineffective anymore.

Bilateral Contract: A contract made with mutual agreements to fulfill an action in return for a corresponding action

Unconscionable Contract: An unfair and unreasonable contract which is in favour of one side of the party.

Aleatory Contact: A contract which is in effect due to certain circumstances (A contract with a car insurance company- Car crash)

Elements of a Contact

Mutual Consent: Both parties must have an understanding of the contract: penalties, limitations, procedures alike.

Offer and Acceptance: There must be the presence of an offeror (person making the offer) and offeree (person receiving the offer)

Mutual Consideration: The mutual (on both sides) exchange of something in value: a salesman sells a product for cash.

Bona Fide: Acting in good faith. So long as individuals do not purposely or knowingly deceive

Sociology: Terms and Definitions

No Violation of Public Policy: If the contract infringes on and public policy i.e. gambling then it is not enforceable

Competent Parties: There are certain rules in place that leave infants, intoxicated or mentally incapacitated people of their contracts; hold them void.

Statue of Frauds: No suit or action will be taken on certain contracts without written memorabilia; enacted in 1677 by the English Parliament to avoid nonexistent agreements/ fraud.

Reality of Consents

Mutual Mistake: The contract becomes void due a mutual mistake of fact from both parties

Illiteracy: Illiteracy does not void the contract due to the face the illiterate person is capable to give their consent

Fraud: Fraud is when one party is deceiving another to persuade the other party to enter into the contract making the mutual agreement invalid.

Duress: An act done by a party as a threat to force a party to an unreasonable agreement or an agreement they would not normally sign.

Undue Influence: Unlawfully influence of one party which alters first will of another party to change.

Cite this article as: William Anderson (Schoolworkhelper Editorial Team), "Basics of Contract Law: Types & Definitions," in SchoolWorkHelper, 2019, https://schoolworkhelper.net/basics-of-contract-law-types-definitions/.
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