Classification of contracts in english law

Agreements between two entities, creating an enforceable obligation to do, or to refrain from doing, a particular thing. The purpose of a contract is to establish the agreement that the parties have made and to fix their rights and duties in accordance with that agreement. The courts must enforce a valid contract as it is made, unless there are grounds that bar its enforcement. Statutes prescribe and restrict the terms of a contract where the general public is affected.

Different Kinds of Contracts in Business Law

To be clear, you can simply define a contract as an agreement that can be enforced by law. It can even be an oral contract. He defined a contract as:. To put things simply, a formal contract is a contract made by deed.

A contract made by deed is one that is signed, sealed and delivered. Previously, a contract by deed need not be signed, however, going by the provision of 73 of the English Law of Property Act , a deed must be signed. The reason for this is not far fetched. In those days seals were distinctive of the owner. However today, a seal is no longer distinctive because they are mass produced and could be gotten like any other commodity in the market.

Hence the requirement of a signature in a deed. Previously, it was required the a deed had to be physically delivered. However, following the decision in Xenos vs Wickham , all that is needed is evidence that the executor of the deed made it clear that he wanted to transfer the property to the recipient.

The effect of contracting by deed is that in such cases, consideration needs not be furnished. Thus it is best to use a deed in transferring gifts to beneficiaries. However, some contracts like transfer in legal estate must be in a formal contract.

A simple contract is simply defined as a contract that is not formal. It could be in writing or oral. Until recently, all informal contracts were referred to as parol contracts, now parol refers to only oral contract. In the case of Rann vs Hughes , it was stated that all simple contracts must have consideration. Hence, the presence of consideration is an essential element in the formation of a simple contract.

It is the major distinction between a formal and a simple contract. Express and implied contracts are another classification of contract. An express contract is one in which all the essential terms of the contract have already been agreed to by the parties. For example in contract for sale of goods the parties would have decided on essential terms like the price, amount of goods, time of delivery etc. An implied contract, on the other hand, is one in which the court will construe the presence of a contract from the conduct of the parties involved.

For instance, when a person enters a bus, there is an implied contract that he would pay his fare if the bus takes him to his destination. One more classification of contract is bilateral and unilateral contract. A bilateral contract is one in which there is an exchange of promises between the two parties. For instance, if Tope agrees to buy a goat from Tobi, she promises to give Tobi money and Tobi promises to give her the goat.

In this case, the consideration is an executory consideration. Also, in this type of contract both the offeror and the offeree are bound by the terms of the contract. A unilateral contract is one in which there is an exchange of a promise for an act.

An example is if Tobi promises to give naira to anyone that finds his missing goat. In the case of Carlill vs Carbolic smokeball co , the Carbolic Smokeball Company promised to give a reward to anyone who used their drug and still suffered from the flu. The plaintiff used the drug but still suffered from the flu. As a result, she applied to the Carbolic Smokeball Company to claim her compensation. The company refused to give her the compensation and she sued them. The court held that there was a unilateral contract between the parties because there was the promise of a reward to anyone who fulfilled an act.

The court held that while there was no contract with the whole world, there was a contract with anyone who fulfilled the act required for the promise reward. In a unilateral contract, only the offeror is bound by the terms of the contract. So, if you have come to the end of this post, you know what a contract is and the different types of classifications.

If you have any questions, feel free to drop a comment below. Author: Olanrewaju Olamide Olamide is an avid reader who believes that no knowledge is wasted. If he is not surfing the internet, he would be doing something else to get more information, whatever that is.

Bilateral contract involves promises between two parties. And such Mr B can be sued for not carrying out his contractual duty. Notify me by email when the comment gets approved. Skip to content. He defined a contract as: …an agreement between two or more parties which creates reciprocal legal obligations to do or not to do a particular thing. Classifications of Contract The following are the different classifications of contract: Formal and simple contract Express and implied contract Bilateral and unilateral contract Formal and Informal Contract To put things simply, a formal contract is a contract made by deed.

Express and Implied Contract Express and implied contracts are another classification of contract. Bilateral and Unilateral Contract One more classification of contract is bilateral and unilateral contract. In unilateral contracts, the consideration is an executed consideration. Conclusion So, if you have come to the end of this post, you know what a contract is and the different types of classifications.

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Contracts can be broadly classified on the basis of (A) Creation, (B) Validity, (C) When the Court of Appeal ruled in favor of English company, the Poland. Classification of contracts - general process. just one part of an agreement in the legal form of a contract. In order to determine the appropriate IFRS to apply issued in the U.K. and Ireland have the following features: 1. It is possible to.

According to the mode of formation of contracts, contracts may be classified into three namely,. Image: Classification of Contracts by formation, performance, execution. A contract is said to be an express contract, if the terms of a contract are expressly agreed upon between the parties either by words spoken or written at the time of formation of the contract. An express promise results in express contract. A promise is said to be an express promise, when the offer or acceptance of any promise is made in words.

English contract law is a body of law regulating contracts in England and Wales.

A contract is a legally binding agreement that recognises and governs the rights and duties of the parties to the agreement. An agreement typically involves the exchange of goods, services, money, or promises of any of those.

English contract law

C ontract is an agreement enforceable by law. Between two or more parties for the doing or not doing of something specified. Contracts can also be classified according to performance. A contract can be either executed or executor. An executed contract—is where one party has performed all that is required to be done according to the contract.

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Some contracts are written, some oral; some are explicit, some not. Because contracts can be formed, expressed, and enforced in a variety of ways, a taxonomy of contracts has developed that is useful in grouping together like legal consequences. In general, contracts are classified along four different dimensions: explicitness, mutuality, enforceability, and degree of completion. Explicitness is the degree to which the agreement is manifest to those not party to it. Mutuality takes into account whether promises are given by two parties or only one. Enforceability is the degree to which a given contract is binding. Completion considers whether the contract is yet to be performed or whether the obligations have been fully discharged by one or both parties. We will examine each of these concepts in turn. An express contract A contract in words, orally or in writing. The parties to an express contract, whether it is written or oral, are conscious that they are making an enforceable agreement.

To be clear, you can simply define a contract as an agreement that can be enforced by law. It can even be an oral contract.

Business contracts serve to obligate the parties involved to fulfill their duties by exposing them to the risk of legal consequences in the event of a breach. Different kinds of contracts in business law are used for different types of business agreements.