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Different types of contracts can be legally binding

When parties decide to enter some form of mutually beneficial venture, they may create a contract so as to have a clear and legally binding agreement. A contract can help keep a project on track and ensure that all involved receive a satisfactory outcome to their plans.

But there is no one-size-fits-all style of contract. Different circumstances can give rise to different kinds of agreements. What follows are some different forms of legally recognized contracts:

  • Express contracts are created with language, either spoken or written, that is clear in its explanation of an agreement and the agreement’s terms.
  • Implied contracts are created on the basis of actions that clearly demonstrate the intention of the involved parties to form an agreement, even if there was no expressly stated or written commitment to do so.
  • Unilateral contracts involve requesting the performance of an action prior to the agreement being formed. An example of this could be posting a flyer that offers a reward for the return of a lost pet. Once someone finds and returns the pet, then the agreement can be formally created and satisfied.
  • Bilateral contracts are agreements that stipulate promises to be exchanged by the involved parties. In bilateral contracts, the parties may be thought of as both offering a promise and receiving some benefit from a promise.

And while the descriptions of these contracts may seem simple enough, actual contracts can become extremely complicated. Even the best attempts at creating clear and specific terms can yield results that include contradictory or ambiguous clauses. Ultimately, these discrepancies could create contract disputes between parties when attempting to determine if the terms of an agreement are actually being met.

At some point, you may find yourself at odds with another party because of a disagreement regarding the interpretation of the terms of a contract. When this happens, you may think about having a contract litigation lawyer review your agreement. Based on the lawyer’s findings, you may be able to have your interpretation of a contract successfully enforced.