, Definition of contract
• Contract, in the simplest definition, a promise
enforceable by law. The promise may be to do something
or to refrain from doing something. The making of a
contract requires the mutual assent of two or more
persons, one of them ordinarily making an offer and
another accepting. If one of the parties fails to keep the
promise, the other is entitled to legal redress. The law of
contracts considers such questions as whether a contract
exists, what the meaning of it is, whether a contract has
been broken, and what compensation is due the injured
party.
, Nature and kinds of Contracts
• Express Contracts:
– Definition: These contracts are formed through explicit oral or written agreements
where the terms and conditions are clearly stated.
– Example: A signed lease agreement for renting an apartment.
• Implied Contracts:
– Definition: These contracts are not explicitly stated but are inferred from the
actions, conduct, or circumstances of the parties involved.
– Example: When someone orders food at a restaurant, an implied contract is
formed that the customer will pay for the meal.
• Unilateral Contracts:
– Nature: In this type of contract, one party makes a promise in exchange for the
other party's performance.
– Example: A reward for finding a lost pet is an example of a unilateral contract.
• Bilateral Contracts:
– Nature: Both parties exchange promises, and each promise is considered to be the
consideration for the other.
– Example: A typical sales contract where one party agrees to sell a product, and the
other agrees to pay for it.
, • Executed Contracts:
– Nature: The parties have fulfilled their obligations, and the contract is complete.
– Example: Buying a cup of coffee and paying for it immediately is an executed contract.
• Executory Contracts:
– Nature: One or more parties still have outstanding obligations to fulfill.
– Example: A lease agreement where monthly rent payments are ongoing represents an
executory contract.
• Void Contracts:
– Nature: A contract that is not legally binding and has no legal effect from the beginning.
– Example: A contract to perform an illegal act would be void.
• Voidable Contracts:
– Nature: A valid contract that one party has the option to void or enforce.
– Example: Contracts with minors are often voidable by the minor.
• Unenforceable Contracts:
Nature: Contracts that may be valid, but a court will not enforce them
due to some legal technicality.
Example: Contracts not properly documented or lacking required
elements.
• Contract, in the simplest definition, a promise
enforceable by law. The promise may be to do something
or to refrain from doing something. The making of a
contract requires the mutual assent of two or more
persons, one of them ordinarily making an offer and
another accepting. If one of the parties fails to keep the
promise, the other is entitled to legal redress. The law of
contracts considers such questions as whether a contract
exists, what the meaning of it is, whether a contract has
been broken, and what compensation is due the injured
party.
, Nature and kinds of Contracts
• Express Contracts:
– Definition: These contracts are formed through explicit oral or written agreements
where the terms and conditions are clearly stated.
– Example: A signed lease agreement for renting an apartment.
• Implied Contracts:
– Definition: These contracts are not explicitly stated but are inferred from the
actions, conduct, or circumstances of the parties involved.
– Example: When someone orders food at a restaurant, an implied contract is
formed that the customer will pay for the meal.
• Unilateral Contracts:
– Nature: In this type of contract, one party makes a promise in exchange for the
other party's performance.
– Example: A reward for finding a lost pet is an example of a unilateral contract.
• Bilateral Contracts:
– Nature: Both parties exchange promises, and each promise is considered to be the
consideration for the other.
– Example: A typical sales contract where one party agrees to sell a product, and the
other agrees to pay for it.
, • Executed Contracts:
– Nature: The parties have fulfilled their obligations, and the contract is complete.
– Example: Buying a cup of coffee and paying for it immediately is an executed contract.
• Executory Contracts:
– Nature: One or more parties still have outstanding obligations to fulfill.
– Example: A lease agreement where monthly rent payments are ongoing represents an
executory contract.
• Void Contracts:
– Nature: A contract that is not legally binding and has no legal effect from the beginning.
– Example: A contract to perform an illegal act would be void.
• Voidable Contracts:
– Nature: A valid contract that one party has the option to void or enforce.
– Example: Contracts with minors are often voidable by the minor.
• Unenforceable Contracts:
Nature: Contracts that may be valid, but a court will not enforce them
due to some legal technicality.
Example: Contracts not properly documented or lacking required
elements.
