The contract is known as an agreement between the two or more parties that any party can turn to the court to enforce. And laws that are made to govern these contracts are known as contract laws. In case of breach of these agreements, contract laws come for the rescue of the affecting parties, help in resolving the issues and provide a fair remedy. People who conduct business, they use contract laws. This is so because contracts help in carrying on the business transactions smoothly and also help to avoid any misunderstanding.
There are many types of contracts. Now we discuss these types one by one.
Express contract: This is a type of contract in which terms are stated openly or expressly, and these terms and conditions may be in written or in oral form at the time of preparation of this contract. This is the most common type of contract law that is preferred by the people when they think about the formation of a contract.
Implied Contract: When we talk about the implied contract, we come to know that implied contracts are of two types. Implied in fact contract and implied in law contract. Implied in fact contract is one that binds both the parties with their mutual consent but terms of the agreement are not expressed like the Express contract. Implied in law contract is also known as quasi-contract. In this type of contract, contents are also not specifically written. These type of contracts are less preferred by the people as compared to the Express contract.
Bilateral Contracts: In this type of contract, both parties agree to carry out certain things. Both parties are bound to fulfill their promises. For example, you have decided to buy a car from another person for 1,500,000. Now the person who is selling a car, he is bound not to sell his car to anyone else after this contract. And you are bound to pay 1500,000 for this car as a buyer. So both parties need to meet their promises.
Unilateral Contracts: This is a type of contract in which one party demands a certain type of performance from the other party (offeree) instead of any promise. In this type of contract, offeree does not make any promise so he will not be liable to pay anything or he cannot be sued in the court if he gets failed to perform some activity. Only the offeror is responsible as he does promise. That is why it is called a single-sided contract.
There are some other types of contract laws too, but these are the most common types that are practiced by the people normally.