Contract Law


Know The Types of Formal Contract

Know The Types of Formal Contract

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Know The Types of Formal Contract

Formal contracts are those that entail a written agreement between two parties that are considered to be legally binding and enforceable by law. Formal contracts must contain an offer, the acceptance of such offer, and the conditions in regards to payments and goods or services that are to be delivered as a result. Therefore, any particular kind of written contract can be considered a type of formal contract agreement.

Contracts are a very common occurrence and are undertaken by people on a daily basis. Work contracts, automobile leases, loan agreements, and even signing a credit card receipt after a purchase are all types of formal contract agreements. Therefore, to establish the most common types of contracts, one would have to consider them in relation to a particular field, such as business. In business, the most common contracts may be Bill of Sale, Purchase Order, Warranty, or Security Agreement.


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