Contractual Definition
When two people or organizations agree to do something together, they form a contract. This contract can be written, verbal, or implied by both parties’ actions. The contract establishes what each party agrees to do, and sets expectations for both sides.
A written contract is the most clear and binding type of agreement. It’s important to have a written agreement when engaging in any type of business transaction, so that all parties are clear on the terms of the deal. A well-written contract will include all relevant details about the agreement, including what each party is responsible for, deadlines, and any other important information.
Verbal contracts can be binding, but they can be harder to enforce than written contracts. If there is ever a dispute about what was agreed upon, it can be difficult to prove what was said without a recording or witnesses. For this reason, it’s generally best to avoid verbally agreeing to anything that could have serious consequences if not carried out as expected.
An implied contract is created when two parties take action that makes it clear they intend to create a contractual relationship. For example, if someone hires someone else to do work for them, an implied contract is created. The hiring party is typically responsible for paying the worker for their services, and the worker is typically responsible for completing the work as agreed upon.
