Not all contracts are created equal. Contracts can be divided into different classifications based on their characteristics.
Express vs. Implied
- Express – assent is manifested (or shown) directly
- Implied – assent is implied from the conduct of the parties
Unilateral vs. Bilateral
- Unilateral – Only one of the parties make a promise; a promise for an act or forbearance to act
- Bilateral – both parties are both a promisor and a promisee; a promise for a promise
Valid, Void, Voidable & Unenforceable
- Valid – meets all the requirements of a binding contract (mutual assent, consideration, legality, capacity)
- Void – no contract at all; without legal effect (e.g. adjudicated incompetent person attempts to contract)
- Voidable – contract capable of being made void, voidable by one party (e.g. contracts with minors)
- Unenforceable – a contract for the breach of which the law provides no remedy (e.g. contracts violating the statute of frauds)
Executed vs. Executory
- Executed – fully performed by all the parties
- Executory – “unperformed”, one or more promises by any party to the contract are yet unperformed
Knowing which type of contract is involved in your case can help you to determine if a contract is enforceable, when would be the right time to file suit, as well as other important issues which affect your legal rights under the contract.