American Intercontinental University
A contact is a legal binding agreement made between two parties. A contract is only enforceable if both parties involved in the contract have agreed to give or receive something of value. When going into an agreement or contract it is important to know the type of contract. This paper will explore the various types of contracts and the meaning of each. Express or implied contracts, unilateral and bilateral contracts and voidable contracts will be reviewed as well as an individual’s right when it comes to fulfilling your end of a contract.
The first thing to know is a contract is a legal binding agreement made between two parties. In order for a contract to be valid both parties
that are involved must have agreed to give or receive something of value (Course Materials). An express contract is a contract that is either a written
or verbal and is agreed upon and terms stated by the involved parties. An implied contract is an agreement or contract made by an act or conduct.
For example if you ride the Subway you have to pay, you are not told every time you ride it is just implied and you pay. This is a non-formal
contract that is not formally stated in words. This type of contract is just as binding in a court of law as an express contract.
Bilateral contract both parties involved are making promises (Course Materials). It is an exchange between both parties that they each
perform some type of act. A unilateral contract is when one party is making a promise. This is a promise made by one of the parties and in
exchange an act or performance made by the other party. It is an acceptance of an offer in return making a promise once such act is performed. In a
unilateral exchange the contract or agreement can be revoked up until the time the performance is complete. These are both contracts that can be
be seen and carried out in a court of law and the court will determine the acts on how the parties entered into the contract. The courts will not
decide on the type of the contract they will only hear evidence of the agreement and they do not enforce on side arguments.
Once a valid contract is in place can it be void or voidable? Under certain circumstances a contract can become void. When a contract
becomes void it means the contract never took place. When making an agreement you can void a contract if both parties agree to terminate the
contract. If you sign into a contract that does not meet the element for a valid contract that said contract will be void. A contract can also be void if it
had a time limit and it has expired. A void contract is releasing each party from the binding agreement that was set into place. A voidable contract is
a valid contract that should not remain valid due to the way it was formed (live chat). Misrepresentation, Fraud, undue influence, capacity, or a
minor signing into a contract are all reasons for a voidable contract. A void contract cannot be legally enforced and a voidable contract is one by law
that becomes voidable.
A contact cannot exist just because there is an agreement it needs to meet the requirement for a valid contract. Elements needed for a valid
1. Offer and acceptance- This is when and offer is made and accepted by another party.
2. Intention to create legal relations-This is when the parties agree to enter into a legal binding agreement.
3. Consideration- Consideration is the price paid for the promise of the other party. This must be something of value but does not have to be money.
4. Legal capacity- Need to be of legal age, sound mind and no misrepresentation.
5. Consent-Must be entered into on their own free will and know what is expected of the contract.
6. Illegal and...