A contract is an agreement enforceable at law. All contracts are agreements but not all
agreement are contracts. A contract needs:
● an offer
● an acceptance
● consideration
● intention
● contractual capacity
There are three types of contract.
1. Unilateral contract
Unilateral contracts are created when one party pays another party to perform an
action. Unilateral contracts can come about as a result of reward, or through
advertisements, when an advertiser promises to pay members of the general public if
they take a course of action.
2. Bilateral contract
A bilateral contract requires both parties to perform an action. It is a reciprocal
arrangement between two parties – both parties promise to perform an act in exchange
for the other’s act.
3. Collateral contract
A collateral contract is secondary to the main contract, but it stands independently and
separate. Usually it is made between the original parties but it can be made with a third
party. The reasons for such a contract may be because some terms need to be added
to the main contract, or there are errors in the main contract, or if the contracting parties
are different. A collateral contract may override or supplement the main terms of the
contract.
agreement are contracts. A contract needs:
● an offer
● an acceptance
● consideration
● intention
● contractual capacity
There are three types of contract.
1. Unilateral contract
Unilateral contracts are created when one party pays another party to perform an
action. Unilateral contracts can come about as a result of reward, or through
advertisements, when an advertiser promises to pay members of the general public if
they take a course of action.
2. Bilateral contract
A bilateral contract requires both parties to perform an action. It is a reciprocal
arrangement between two parties – both parties promise to perform an act in exchange
for the other’s act.
3. Collateral contract
A collateral contract is secondary to the main contract, but it stands independently and
separate. Usually it is made between the original parties but it can be made with a third
party. The reasons for such a contract may be because some terms need to be added
to the main contract, or there are errors in the main contract, or if the contracting parties
are different. A collateral contract may override or supplement the main terms of the
contract.
