Types of Contracts.
Verbal contract is a type of formal agreement that is only spoken and is not confirmed by a written document, for example: buying a hot chocolate and a croissant in a coffee shop. Although being difficult to prove the terms of a verbal contract, in case of a violation, this kind of contract is juridically valid. Afamous example of violation of a verbal contract occurred in the decade of 1990, when the actress Kim Basinger refused to honour her promise to be in the movie of Jennifer Lynch “Boxing Helena”. At the court it was attributed to the productors $8 million of damage, that Kim Basinger had to pay; the actress appealed about the decision and later on, the case was solved and it was decided that theamount to be paid stipulated in the first trial was going to be reduced, but not before the actress had to declare bankrupt.
Different to a verbal contract, a written contract is referred to in a written document that outlines an agreement to both sides. The sides can be individuals, enterprises or organisations. Written contracts can also exist between individuals and enterprises, betweenindividuals and organisations in overall or between enterprises and enterprises, or even between enterprises and organisations overall. All the factors related with the agreement established between each side, must be included in the written document in details, and each side involved has to sign the document so that it is valid. A common example of a written contract is a work contract between anindividual and an enterprise. Talking about written contract, any violation of the written terms in the document for each sides, it can characterise what is say to be breaking the contract, causing consequences for the side that violated the terms according to the written contract. In written contracts, generally it becomes really simple to resolve questions, in case problems occurs, because fromthe beginning all the terms that interest both sides must be written in detail.
Deeds is a specific written contact for transfer of a property title, that are used when there’s a purchase or sale of a immobile, like land or houses. In these case, its specified that the property title is only transferable when the buyer finishes to pay the pre-established prices of the contract. Deeds is aswell-known as a contract of purchasing and sale of immobile. When a person buys a house without a mortgage, is necessary to make a contract with Deed that enables that the transaction is complete.
In the business world in general, contracts are really important, because they enable enterprises and individuals to take in compromises being protected by the law, in a general state, the contractsreduce the risk in shops. For a contract to exist, some conditions needs to be satisfied, these are : offer, acceptation, consideration and intension.
Offer is an expression of desire of someone, some enterprises or organisation in relation to an individual or enterprise, the offer can be related to a product or a service, in a set of specific terms, with the intention of that if the offer isaccepted, it can create a bond with the person that accepted the offer.
Acceptance is an expression of a absolute concordance and unconditional of all the terms established in the offer. Generally speaking the acceptance is made in the same way as the offer is received.
Consideration is something of value that is given and received in a contract. When entering a contract, you need to, based onthe contract, give something of value to the other party , and at the same time you will receive something of value back, this is consideration.
Intention is an abstract part of the contract, however not less important, because its intention is the implicit desire in the contract to create a legal bond between the two part of the contract.
When these conditions are evident and applicable, it...