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a promise, for the breach of which the law provides a remedy, or the performance of which the law recognizees as a duty; a transaction involving two or more individuals whereby each has reciprocal rights to demand performance of what is promised.
ADHESION CONTRACT see adhesion contract
ALEATORY CONTRACT see aleatory [ALEATORY CONTRACT]
BILATERAL CONTRACT one in which there are mutual promises between two parties, each being both a promisor and a promisee
CONDITIONAL CONTRACT a contract whose performance depends upon a future event; e.g., a contract to purchase a car if it passes a motor vehicle inspection.
EXAMPLE: Glen wants to purchase a large tract of land from seller to build a manufacturing plant but is unsure whether he can get a loan from the bank to finance the construction costs. Therefore, he signs a conditional contract with the seller that he will purchase the land only if he obtains a construction loan from the bank.
CONTRACT OF ADHESION see adhesion contract
CONTRACT OF HAZARD see sale [SALE IN GROSS]
CONTRACT UNDER SEAL see SPECIAL CONTRACT (below). See also sealed instrument; specialty.
COST-PLUS CONTRACT one providing that the contractor receives payment of his or her total costs, plus a stated percentage or profit
FORMAL CONTRACT see sealed instrument
FREEDOM OF CONTRACT see freedom of contract
IMPLIED CONTRACT see QUASI [IMPLIED] CONTRACT (below)
INSTALLMENT CONTRACT see installment contract
OPTION CONTRACT see option contract
ORAL CONTRACT one that is not in writing or that is not signed by the parties
OUTPUT CONTRACT one whereby a party promises to deliver his or her entire output to another and the other promises to accept the entire output supplied.
QUASI CONTRACT see quasi [QUASI CONTRACT]
REQUIREMENTS CONTRACT one whereby a party agrees to purchase all his or her requirements of a particular product from another, and the other agrees to supply the need.
SEVERABLE CONTRACT see severable contract
SIMPLE CONTRACTsee sealed instrument [SIMPLE CONTRACT]
SPECIAL CONTRACT a contract under seal; a specialty. See sealed instrument. See also adhesion contract; breach (of contract); privity [PRIVITY OF CONTRACT]; retail installment contract; tender; usurious contract; yellow dog contract.
UNILATERAL CONTRACT agreement whereby one makes a promise to do, or refrain from doing, something in return fro an actual performance by the other, rather than a mere promise of performance.
Source: Barron's Dictionary of Legal Terms, Steven H. Gifis, 5th Edition; © 2016