Contracts regulate almost everything we do, such as buying fresh bread at a bakery and paying off the installment on a car. But what is a contract?
a) An agreement with specific terms between two or more people or parties
b) In which on party makes a promise and
c) Where the other gives consideration or a value benefit.
The fundamental requirements of a contract are:
1- An offer
2- Acceptance of that offer
3- Mutual intent to enter legal relations
5- Subject and signing of contract is legal
6- Absence of mistakes, fraud, undue influence and misrepresentations.
There are several types of contract, of which the main ones are:
Unilateral contract: Where the contract is open to the “whole world” and only need to communicate acceptance of the offer. An example: $55 reward for finding my pet cat. This contract is quite rare.
Bilateral contract: The most common type of contract. They are usually oral, but contract for land or real estate must, by law, be in writing. An example: If you repair my car I will pay you $500.
Conditional contract: These contracts are conditional on the occurrence of certain facts. An example: insurance contract – the company pays the indemnity only if the car involved in an accident.
Express and Implied Contract: Contracts are either made with express or defined terms, in with case they are express contract, or they exist implicitly. For ex. of an implied contract is when you get on a bus. The passenger and the bus conductor do not talk about there being a contract when the passenger pays the fare. But there is a contract because it is implicit that the payment is in exchange for the bus taking the passenger to its destination.