What Is Specific Types Of Contracts And Give An Example Of Each

940 Words Oct 23rd, 2016 4 Pages
The question I have been asked is to define specific different types of contracts and give an example of each. A contract is a written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law. Contracts are governed by the uniform commercial code (‘UCC”) or by common law. UCC governs the sale of goods Common law governs most other transactions, including transactions for services such as rentals.
A valid contract is when there is mutual assent (offer and acceptance) and consideration (bargain for exchange). This is a written or expressed agreement between two parties to provide a product or service. For example, Sam offers to rent a hotel room for a month from John and John accepts and receives 2K from Sam in exchange for the services. A voidable contract is a formal agreement between two parties that may be rendered unenforceable for several legal reasons. Reasons that can make a contract voidable include failure by one or both parties to disclose a material fact; a mistake, misrepresentation or fraud; undue influence or duress; one party 's legal incapacity to enter a contract; one or more terms that are unconscionable; or a breach of contract. A voidable contract is originally considered to be legal and enforceable but can be rejected by one party if the contract is discovered to have defects. If the party with the power to reject the contract chooses not to reject the contract despite the defect, the…

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