6.12. Scanning Kinds of Contracts

1. Contracts may be classified in three ways: by type of formation (express or im­plied), by performance (unilateral or bilateral, executed or executory), or by enforceability (valid, unenforceable, void or voidable).

2. By type of formation:

An express contract is one in which the terms of the contract are stated by the parties, either orally or in writing. The example of a written one is a contract under seal which is generally called a specialty con­tract, a covenant or a deed. Three things are essential to a deed - writing, sealing and delivery.

3. An implied contract is one in which the terms of the contract are not stated by the parties. There are two types of implied contracts: those implied in fact and those implied in law.

4. The existence and the terms of an implied-in-fact contract are manifested in conduct, rather than words. The proof of the contract lies in the conduct of the parties; it means that a reasonable person, being aware of this conduct, would infer that a contract exists.

5. An implied-in-law or quasi contract is created by operation of law (i.e., a court implies a contract) in order to avoid unjust enrichment of one party at the expense of another. There is no agreement, no meeting of the minds, one party has ren­dered a benefit to another under such circumstances that fairness and equity require compensation.

6. By type of performance:

• bilateral versus unilateral

A bilateral contract is based on an exchange of promises - a promise for a promise. Thus there is a mutual engagement.

A unilateral contract involves a promise by one party and an act by the other. If, however, the person receiving the offer promises to act before doing so, the contract may become bilateral.

• executed versus executory

An executed contract is one that has been fully performed by both parties; all promises have been fulfilled.

In an executory contract something remains to be done by one or both parties at some future date.

7. By enforceability:

A valid contract meets all legal requirements and can be enforced by either party.

An unenforceable contract is one that is valid in itself but not capable of being proved in a court of law because this contract does not meet one or more legal requirements and cannot be enforced by either party. Examples are promises to make a gift (no consideration), promises made in jest (no contractual intent), and past breaches of contract now beyond the statute of limitations.

A voidable contract is binding on only one of the parties. The other party has the option to withdraw from the contract or enforce it. Examples are contracts made by minors and contracts made under mental duress.

A void contract is a contract that has no legal effect and cannot be enforced by either party. Examples are illegal agreements made under threat of physical force.

6 .13. Lexis

enforceability - обладание исковой силой; возможность принудительного осуществления в судебном порядке; обеспеченность правовой санкцией

contract under seal - договор за печатью (скрепленный печатью)

specialty con­tract - контракт в виде договора, скрепленного печатью

covenant - договор или акт за печатью; обязательство (из договора за печатью)

deed - документ с подписями и печатью

implied-in-fact contract - подразумеваемый договор (договор, условия которого по умолчанию вытекают из поведения сторон)

infer - заключать; делать (логический) вывод; выводить (заключение, следствие; из чего-л.)

implied-in-law - следующий из предписаний закона, подразумеваемый в силу закона

unjust enrichment - неосновательное обогащение, неправомерное обогащение

at the expense - за счёт

ren­der a benefit - оказывать содействие, создавать выгоду

bilateral contract - двусторонний договор

unilateral contract - односторонний контракт; контракт, перед заключением которого одна из сторон уже выполнила почти все свои обязательства

executed contract - контракт, условия которого выполнены обеими сторонами; договор с исполнением в момент заключения

executory contract - контракт, подлежащий исполнению в будущем

unenforceable contract - контракт, претензии по которому не могут быть заявлены в суде

jest - шутка, проказа, розыгрыш

past breach - нарушение договора, срок действия которого уже истёк

withdraw from the contract - денонсировать договор, выйти из договора