2. Simple Contracts
This may be a written or verbal agreement or one implied by
conduct. Simple contracts are legally binding or valid when
they have the elements of offer and acceptance; consideration;
genuineness; capacity; legality; possibility and good faith. A
simple contract must satisfy all the stated elements.
Examples include, buying a grocery item or hiring a taxi.
3. Specialty Contract
This is a formal agreement in writing. Specialty contracts are also referred to
as deeds. These contracts must be signed; sealed and delivered.
Examples include mortgage contracts and sale of land.
4. Contract of Record
This type of contract is handed down by court order. It refers to one
which has been declared by a court based on a judgment in a case. A
contract of record is an imposition by the court for a party to do
something (or not to do it).
Example: The court can order a party to pay damages for pollution of the
environment or to discontinue production of a good if it has been found
to be unsafe.
More Examples: includes alimony payment or an order to cease a
particular activity.
