| Type of the contract
| Impact
|
| Simple or oral contract is a legally binding contract, but it carries a risk.
| It is difficult to enforce in the court because there is no evidence of the terms.
|
| Contract in deed or written contract provides evidence of the terms and allows both parties to study terms – that makes a contract enforceable. Some contracts are only legal if they are in writing (property selling e.g. buildings).
| The impact of the deed is that it makes it legal.
|
| Void contract is not a contract. It never was a contract – it is void ab initio.
e.g. Selling something you do not own is a void contract. A contract for an illegal act is also void.
| The impact of a void contract is that goods sold can be recovered, even if they have been sold on to a third party.
|
| Voidable contract is a contract which can be made void in particular situations, for example one party is a minor. The contract is legally valid until it is made void.
| The impact is that goods can be recovered unless they have already been sold to a third party, which would have been legal.
|
| Unenforceable contract is legally binding, but cannot be enforceable by a court, for example there is no enough evidence.
| The impact is that both sides are obligated to perform their part of the contract, but the court will not make you.
|
| Unilateral contract is an offer made to the world at large, where acceptance is the performance of the duty specified.
e.g. reward poster
| The impact is that contract is formed when performance is carried out or begun to be carried out.
|
| Electronic contracts
e.g. emails
| The impact is that have the same effect as written contracts.
|
| Collateral contract is contract where one contract is used as consideration for another.
| The impact is when one contract can be used as consideration for another.
|
Analysis of terms in contracts with reference to their meaning and effect
Express and implied terms
| | Express terms
| Implied terms
|
| Meaning
| An express term is a term expressly agreed by the parties to contract to be a term of that contract.
| Implied tern is a term deemed to form part of a contract even though not expressly mentioned.
|
| Effect
| Express terms cannot over side terms implied by the statute. However, express terms can over side terms implied by custom.
| Terms implied by the statute ‘Sale of Goods Act 1979’. They protect you and cannot be taken away.
Terms implied by custom – the way it is always done.
|
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