Written, Oral or Implied Contracts
Written, oral or implied contracts are enforceable, but conditions applicable to each form must be met. The conditions make a contract legally enforceable. The most important condition for making a contract legally enforceable is all parties to the contract must provide something of value to the other parties. As an example, when you take your car to an auto repair shop which agrees to make the necessary repairs and you agree to pay for this work, you and the repair shop have received something of value. You and the repair shop have entered into a legally enforceable contract because of the exchange of value. This contract could be written, or it could be an oral contract.
Written Contracts
The written contract is the most common form of contracts. A written contract is the most easily enforced contract and the contract that will likely avoid disputes. Parties to the contract can include all of the provisions they believe are necessary to achieve its purpose. A good example is a real estate purchase agreement which is both a contract to sell property and a contract to buy the property. The parties can include provisions they deem necessary to conclude the sale.
Simply written contracts can be effective, but more inclusive contracts are required when the exchange of value involves complex matters. Written contracts for complex transactions should be created by an attorney who specializes in contract law. A contract will provide the most protection when it is written to withstand a legal challenge. The attorney has “crafter’s tools” that make legally sustainable contracts.
Oral Contracts
Oral contracts are often made when the transactions are not complicated, but bear in mind that oral contracts are difficult to prove in the absence of credible witnesses. For example, if you hire a person to paint the exterior of your home by just an oral agreement and you find that they did not use the quality of paint you had agreed to, then your agreement will likely not be enforceable.
Oral contracts lead to misunderstandings. Many words in the English language can be misinterpreted, and this is why legal terms are specifically used instead of the terms that might otherwise be used in everyday language.
Implied Contracts
An implied contract may be the simplest contract and the least complicated. A good example is ordering a cup of coffee at the local coffee shop which posts its prices for you to see readily. You order a cup of coffee and then pay the agreed price. The terms of this contract are implied by the posting of the coffee price and your agreement to pay this price, and you get your cup of coffee.
If the transaction is not to be accomplished on the spot, then a written contract should be crafted to state the essential terms of the exchange. A well written contract will also address the most likely issues that might arise, and assign responsibility for resolving the issues to a specific party.
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