Essay on Classification of Contracts

Submitted By GrewalDeepi
Words: 866
Pages: 4

Nature and Classes of Contracts
Deepinder Grewal
July 17th, 2015
MAN 224  CollegeAmerica Fort Collins
Dr. George Ackerman

Nature and Classes of Contracts
The provision that the law allows if a party to the contract fails or refuses to perform it is the breach of contract. A breach of contract is defined as failing of one or more parties to implement the obligations assumed under the contract (Ashcoft & Ashcoft, 2010). It can allow the other party to take an action against them such as obtain for damages or enforcing performances. It can be any type of contract written or verbal. This is the most common type for the causes of law suits. A contract differs from an agreement because a contract must be an agreement, but an agreement does not have to be a contract (Ashcoft & Ashcoft, 2010). A contract is an agreement with a specific term with two or more persons in which there is a promise to do something in return for a benefit known as consideration. An agreement is when two people come to an arrangement about a particular issue, which include obligations, rights, and duties (Agreement Law Definition, 2006). There is not a big difference between a contact and an agreement. A contract is more formal and more securely presented than the terms that are in an agreement. A contract is an unenforceable agreement when the law requires it to be in a particular form and it is not. It can also be made enforceable by changing the form to meet the requirements of the law. An agreement that is not enforceable in a court of law will not come within the definition of a contract (Ashcoft & Ashcoft, 2010). An enforceable agreement would be a voidable contract, because of the circumstances or the capacity of a party, one or both of the parties may set it aside (Ashcoft & Ashcoft, 2010). An express contract is an exchange of promises that both parties agree to be bound are declared either orally or in writing, or a combination of both (Express Contract). The two items that must be expressed in order to have an express contract, is the intention to contract and the terms of agreement stated orally or written (Ashcoft & Ashcoft, 2010). A seal contract is executed with formal signatures and they must have a seal on the document where to sign or L.S. following it (Ashcoft & Ashcoft, 2010). Recognizance is a second type of formal contract, there are obligations entered into before a court, by which people acknowledge; to do an act that is required by law (Ashcoft & Ashcoft, 2010). A person pledges to perform a specific act or to subscribe to a certain course of conduct. Business contracts are written rather than verbally said so there are no disputes that arise between the parties as the terms of the contract. If a contract was written then there would be no disputes because everything would be stated in that written contract. The difference between an executor and an executed contract an executory contract will be described. A executor contract is a that needs yet to be fully executed or performed, which means that the remains need to be carried into operation or effect (Executory). An example of this is when a person decides to work for someone for one year in exchange for a salary of a certain amount per month; this is classified as an executory contract because the person has yet to work the full year (Ashcoft & Ashcoft, 2010). An executed contract is a contract that has been fully performed