Types of Contracts

This lesson brief is under Construction

Express and Implied Contracts

Express Contracts: Clearly stated terms, either written or oral, where all the essential terms are explicitly agreed upon by the parties.

Implied Contracts: Formed by the conduct of the parties rather than written or spoken words. They are Implied in Fact Contracts; Established by the actions or circumstances of the parties. Implied in Law Contracts (Quasi Contracts): Created by courts to prevent unjust enrichment.

Bilateral and Unilateral Contracts

Bilateral Contracts: Mutual promises between two parties where each party is both a promisor and a promise. Most common type of contract.

Unilateral Contracts: One party makes a promise in exchange for the other party performing an act. The contract is only formed when the act is completed.

Executed and Executory Contracts

Executed Contracts: All terms of the contract have been fulfilled by all parties.

Executory Contracts: Some or all obligations under the contract have yet to be performed.

Valid, Void, Voidable, and Unenforceable Contracts

Valid Contracts: Legally binding and enforceable with all essential elements present (offer, acceptance, consideration, capacity, and legality).

Void Contracts: Not enforceable by law from the outset due to illegal subject matter or lack of essential elements.

Voidable Contracts: Valid but can be voided by one or more parties due to factors such as misrepresentation, duress, or lack of capacity.

Unenforceable Contracts: Valid but cannot be enforced in court due to legal technicalities, such as the statute of limitations or failure to meet formal requirements.

Formal and Informal Contracts

Formal Contracts: Require a specific form or method of creation to be enforceable (e.g, negotiable instruments, contracts under seal).

Informal Contracts: Do not require a specific form and can be oral or written, provided they meet the essential elements of a contract.

Unconscionable Contracts

Contracts that are so one sided or unfair to one party that they shock the conscience and are unenforceable under the law.