In the business industry, contracts are defined as an agreement between two, three or more parties with legal binding, enforceable in the court of law. There are many different types of contracts depending upon the many legal transactions may it be for properties, business and many more. In the business law, there are 8 kinds of contracts such as the express contracts, executed contracts, implied contracts, bilateral and unilateral contracts, adhesion contracts, Aleatory contracts, unconscionable contracts and void and voidable contracts.
An express contract is when both sides state the conditions and terms either in writing or by word of mouth, at the time of the forming of the contract wherein it clearly defines legal consent to the terms of contract. While an executed contract is termed as an agreement when there is no need in doing any moves to be executed by each sides. Also, Implied contracts contains obligations that each side has agreed on which is not expressed verbally but through implying it or through actions. Another one is the bilateral and unilateral contract which can also be referred to as the "two sided contract" because both parties made a two way agreement or promise that are stated in the contract. The adhesion contract are usually made by the side that has more advantage and it is usually used in businesses and is commonly known as the "take it or Leave it" contract
However, there are also different types of contracts which are purposed on the events that may take place in the future, for example, a plane crash or a car accident. The contract holder will not receive any benefits of the contract until those occurrences happens, this type of contract is referred to as the Aleatory contract.
Contracts are supposedly fair but in some cases like the unconscionable contract, it is not. Unconscionable means "an insult to justice and decency". It is an unfair contract that will only provide one-way benefit to the one who has more advantages. It is also the result of exploitation of illiterate and impoverished consumers.
A contract is a legally enforceable document which binds two or more involved parties. It is an agreement that defines the certain obligations required to be followed by the parties.
Even though a contract may be an oral agreement but since it lacks material evidence, therefore contracts are generally written. Some oral contract examples are-buying a book or a food item. Examples of written contracts are-buying a land or a piece of land.
Contracts are of the following two types:
1. Bilateral contract-It is a typical type of a contract where one party offers and the other party agrees. For example: When a land is on sale, the seller offers and the buyer agrees to buy it for a fixed price.
2. Unilateral contract-This is a kind of a contract wherein only one of the two parties makes a promise. For example: Tim promises to pay John a reward of $20 if John finds Tim's bag. Here Tim will be obliged to pay the reward since he promised.
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