Legal Classification of Agreement

Legal Classification of an Agreement: Understanding the Basics

In any business transaction, an agreement is a crucial document that defines the terms and conditions of the arrangement. An agreement can be classified in various ways, each with its specific legal implications. As a professional, it is essential to understand the different categories of agreements to ensure that your content is accurate, informative and relevant to your audience. In this article, we will explore the legal classification of agreements and provide a brief overview of each type.

1. Express and Implied Agreements

An express agreement is one where the parties involved explicitly state their intention to create a legally binding contract. In contrast, an implied agreement is created by the conduct of the parties involved without any formal agreement. For example, an implied agreement can arise when a person pays for goods or services without any discussion of the terms of payment. When drafting an express agreement, it is essential to ensure that all the essential terms are clearly stated to avoid any misunderstandings.

2. Bilateral and Unilateral Agreements

A bilateral agreement is one where the parties involved exchange promises to perform specific actions or obligations. This type of agreement creates obligations on both parties to fulfill their obligations. In contrast, a unilateral agreement involves only one party making a promise to perform a specific action. For instance, when a company offers a reward for finding a lost item, the person who finds the lost item is the only one who is obligated to perform the required action.

3. Executed and Executory Agreements

An executed agreement is one where all parties involved have fulfilled their obligations, and the contract is complete. In contrast, an executory agreement is one where one or more parties involved have yet to fulfill their obligations. For example, when a company signs a contract for the delivery of goods, the agreement is executory until the goods have been delivered.

4. Unenforceable and Void Agreements

An unenforceable agreement is one where the parties involved cannot legally enforce the terms of the contract. This can occur when the agreement violates a statute or a law. In contrast, a void agreement is one where the contract is invalid from the beginning, and there is no legal obligation for either party to fulfill their obligations. For example, a contract that involves the commission of a crime is void.

5. Oral and Written Agreements

An oral agreement is one where the parties involved reach an agreement by word of mouth and do not document the terms of the contract. In contrast, a written agreement is one where the terms are documented in writing and signed by all parties involved. A written agreement is preferable as it provides evidence of the terms of the contract, and it is easier to enforce.

Conclusion

Understanding the legal classification of agreements is crucial in drafting accurate and informative content. As a professional, it is essential to ensure that the content accurately reflects the legal implications of the agreement classification. By doing so, you can ensure that the content is relevant to your audience, and it provides them with the necessary information to make informed decisions regarding their business transactions.