Different Types Of Contract

Discuss the impact of different types of contract

Oral contract Oral contracts are spoken agreements that are legal. The problem proving an oral contract is the lack of evidences.

Written contract

A written contract is a contract where terms are based on writing. Written contracts are also commonly signed. However, a written contract may consist of an exchange of correspondence, sometimes the contract can be signed by one party or even two parties or the contract does not even require a signature.

Bilateral Contract

A bilateral contract is different from a unilateral contract, a guarantee made by one party in return for the execution of some demonstration by the other party. The party to a bilateral contract whose execution is looked for

It comprises of obligations from a mutual agreement and intent to promise, which have not been communicated in words. It is misleading to label as an implied contract one that is implied in law because a contract implied in law does not have the requirements of a true contract. Quasi-contract is a more fitting representation of contracts implied in law. Implied contracts are as binding as express contracts. An implied contract depends on substance for its existence. Therefore to arise, there must be demonstration from the party.

A contract implied is suggested from facts and circumstances that indicate a mutual intention to contract. Circumstances exist that, as indicated by the ordinary course of dealing and common understanding, exhibit such an intent that is adequate to support a finding of an implied contract. Contracts implied in fact do not arise in spite of either the law or the express declaration of the parties. Contracts implied in law are distinguishable in that they are not predicated on the parties’

Things in a shop marked with price are regarded as invitations to treat as opposed to an offer to sell at that price.

The presentation of products in a store is an invitation to treat. An offer is made when the customer chooses the items and takes them to the checkout. The checkout assistant then acknowledges the offer when the payment is tendered and accepted.

In a similar case, such as the Gibson v Manchester City Council, the reply of the council did not consist of a statement declaring a contract and instead used the phrasing “may be willing to sell.” Therefore a contract was not established.

The court held the letter, which came from the council, was not an offer as it stated that “The Corporation may be prepared to sell the house to you" and also "If you would like to make formal application to buy your Council house, please complete the enclosed application form and return it to me as soon as possible." As there was not even an offer given to be accepted, it is considered that no contract had been formed and also the council had not been in breach. Scenario