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When an agreement is created between two parties or more under the obligation of completing the stated items in the agreement then it is considered as contract law. If one party or any party fails to perform or deliver his duty towards the agreement then it is known as breach of contract. Two or more parties can enter into a written or verbal contract depending upon the people involved.
If you look around, you will find various contracts around yourself, such as car loans, property contracts, employment contracts, product contracts, and services contracts. The persons who are bound within this contractual agreement have the obligation of completing their duties with regards to the contract. If any party fails to perform his duty he might face repercussions as mentioned in the contract or stated by law. The written contract must be signed by all the parties involved in the contract.
There are various types of contracts that take place in a person's day to day life, between businessman, between consumer and the seller, for employer and employee. Here are some of the basic contracts that you might have heard of.
The contracts that clearly state the conditions involved in the agreement and the consequences of not abiding by it are known as expressed contracts. Each point and each circumstance is mentioned clearly in the contract, so there are no biased decisions at the time of issues between parties.
Implied contracts are those contracts that exhibit an offer that is made by one party and which s to be accepted by another party. It clearly states that they are the parties and the obligation of accepting the contract and often made by the offering party.
Under a unilateral contract, the offer accepts to make a payment after the occurrence of an act. The party is binding to fulfill its contract only when it is proven that he is liable to perform his part. This can be found in the case of insurance policy contracts between customers and insurance companies.
When both the parties of the contract have to perform their part of the performance then it is known as a bilateral contract. The parties involved in the contract promise to fulfill their path and are provided with the consideration after completion.
Under this contract, the weaker side is given a chance to adhere. The contract is prepared by the bargaining party and not the weaker party. The beginning part II has The Upper Hand under the Adhesion contract.
This contract is based on a mutual agreement that is fulfilled when an uncertain event occurs.
Void contract and voidable contract:
The contracts which cannot be enforceable under the law are known as void contracts. If a person of unsound mind has signed certain documents when he was not lucid then the contract will be considered null and void. Therefore, it is not enforceable under law.
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