There are three main types of contracts: simple contracts which can be written or verbal and require elements like offer, acceptance, and consideration; specialty contracts which are formal written agreements like mortgages or land sales that must be signed, sealed, and delivered; and contracts of record which are court-ordered based on a legal judgment and impose obligations on parties.

1. Types of Contracts
Principles of Business

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.