TABLE OF CONTENTS Although the principle of a contract is easy enough to state, contracts come in many varieties. So as an hors-d'oeuvres to this fascinating subject (sic) a short explanation of the different types of contracts as seen by lawyers is helpful.
| Definition | Contracts can be simple or speciality. Speciality contracts are also known as contracts under seal or deeds. Speciality contracts relate to certain classes of property leases and to contracts in which there is no consideration (see below). This type of contract accounts for a very small proportion of business and is not considered further. Regardless of complexity or volume the majority of business contracts with which this Guide is concerned are known as simple contracts. Contracts of sale and contracts of purchase are examples of simple contracts. |
| Example, Practical pointers | Simple contracts do not have to be made in writing. Individuals make the majority of contracts as oral arrangements only whether it be buying a newspaper or purchasing a meal. Examples of contracts that are required to be made in writing are bills of exchange, the sale of land and consumer credit agreements. Although written contracts may be the preferred approach most companies will both place and accept oral contracts where the urgency of the situation demands. The aim will be to reduce these oral contracts to writing as quickly as possible. Nevertheless, to be valid even oral contracts must satisfy the basic legal requirements described in this... |
