Tag: types of business law

Forms Of Contract In Business Law

In the event that you are a businessperson and deal with contracts, it is most likely that you have observed the various types of contracts. This post will provide you with an overview of the two principal forms of contract in business law, namely express and implied-in-law contracts. An express contract is, in effect, a document that contains the terms and conditions of the contract between two or more parties. This type of contract is very much like a legal agreement that the courts will recognize. However, it bears noting that an express contract does not necessarily mean that it has been put into a written format. It may be just an oral agreement that is binding on both parties as long as there are no other conflicting terms. The other kind of contract that is put into written format is an implied-in-law contract, it is a legal contract that is against the law, but it has not been placed in a written form. On the other hand, an implied-in-law contract does not need to be written and is more akin to a general understanding between the parties. It may have been readily apparent to both parties at the time of formation and without any further agreement or specific conduct by either party. Types And Classifications Of Business Law Contracts: An express contract is a valid and legally binding agreement between two or more parties who intend the agreement to be for the whole of the legal rights and obligations that arise from the contracts without resorting to any additional procedures of law. On the other hand, an implied-in-law contract is a contract that is implied in law based on some of the known facts and circumstances, which as a result, leads to a contract being created between two or more parties. The concept of an implied-in-law contract establishes that the law will imply all obligations that are deemed necessary based on the facts and circumstances between two parties. According to legal experts and the courts, both express and implied-in-law contracts are entirely valid. However, the main difference between these two types of contracts is that an express contract is created by both parties, and it must be a written agreement. On the other hand, an implied-in-law contract can be established on a number of grounds, one of which is that a party may have received some of the benefits from another party but not necessarily through a written agreement. Forming A Contract: Contracts are formed when one or more parties agree to some conditions and terms, which are known as offers. As a result, the other party who receives the offer is also bound by the contracts, and this happens in most cases when there is an acceptance of the offer by the other party. When this happens, the formed contract is known as a binding contract, and both parties tend to be bound by the terms and conditions contained in the contract. When a contract is formed, and both parties acknowledge that the contract has been formed, the agreement will be put into writing for them to read. However, it becomes legally binding as soon as it is created, and both parties are bound by the terms. This means that the main terms of the contract will be written down, and each party will be bound by these terms. The formation of contracts mainly involves two parties who can agree on certain terms and conditions, or there can be an oral agreement between the parties who form a contract based on certain conditions. Common Contract Types: There are various forms of contracts in business law, and the main types of contracts that are generally adopted by parties include sales contracts, agency contracts, loan agreements, and service contracts. All these types of contracts aim at achieving one main purpose, which is to facilitate vehicles and ways through which parties can enter into a contract. It is also worth noting that all these types of business law contracts have certain similarities with respect to the same objective. Alongside this, each contract has certain provisions that are unique to each type. The main purpose of this is to make sure that each contract has certain provisions which are required to be included in different contracts. The types of contracts include sales contracts, agency contracts, loan agreements, and service contracts. A sales contract is perhaps the most common type of business law contract. It involves the sale of goods or services between two industries as well as two or more parties. This type of business law contract can be used by both businesses and consumers because they allow for the purchase and sale of goods or services from one party to another. Conclusion: Business law is quite extensive. As such, it requires the assistance of a professional to be able to deal with all types of contracts within the business. Looking for a business lawyer is essential if you want to avoid falling foul of the law and ensure that your business is legally sound. When dealing with contracts, it is advisable that you verify the credentials and experience of a lawyer before hiring them. This will ensure that your interests are protected when dealing with contracts. Read Also: How To Choose The Best Legal Structure For Your Business Using Short-Term Loans to Help Rebuild Your Credit Score Why Do Businesses Need a Lawyer’s Advice?