1. Factual Elements of a Contract
2. Unilateral and Bilateral Contracts
3. How Can Contracts Be Created?
4. Types of Contracts
5. Contract Formats
6. Examples of Contracts
7. What Are Independent Contracts?

The contractee legal definition is defined as a person or business that enters into a contract with another entity that provides services. The entity providing the services is the contractor; the person receiving the services is the contractee.

A contract is an agreement that involves at least two parties. All parties involved have to agree on certain terms and conditions and sign the contract in order for it to be legally official.

Factual Elements of a Contract

There are various factual elements that must be present in order for a contract to be considered legit. First, one party has to accept an offer from the other party. Second, there has to be a promise to perform a certain action or to deliver a certain product or good. Next, there has to be some sort of valuable consideration involved in the transaction, even if it's not monetary.

Some contracts are simply promises that involve no money whatsoever. Commitments must be present, and in most cases, there will be deadlines involved. And lastly, terms and conditions must be outlined that dictate how the promise is going to be fulfilled.

Unilateral and Bilateral Contracts

A unilateral contract is a pretty straightforward contract. It involves one party making a promise to pay or perform some type of action in return for something of value. For example, one party promises to pay $1,500 in exchange for having a website created. This type of contract almost always includes a strict deadline.

When a bilateral contract is created, this is when one promise is made in exchange for another promise. For example, Tom promises to create a website for Sally at a rate of $1,500 and the website is to be completed by Thursday evening. In return, Sally promises to pay Tom $1,500 on Thursday evening.

How Can Contracts Be Created?

It's very important to understand that contracts can come in both written and verbal formats. However, it is always much easier to enforce a contract when it's in written form. Also, when it comes to suing on a contract, a verbal contract has a shorter time span to be sued than a written contract. For example, in some jurisdictions, a person can only sue someone on a verbal contract within a two-year time period, whereas a four-year time period is allowed on a written contract.

Types of Contracts

There are many types of contracts that a person can enter into:

  • A conditional contract means the contract is to be fulfilled only if a certain condition is met.
  • A 'joint and several' contract involves several parties that make a promise to one another; however, each party is responsible in one way or another to uphold their promise.
  • An implied contract is when the courts review the circumstances and deem something like a contract is, in fact, in place.

For some people, a contract simply means that an agreement has been made between two or more parties. It can come in the form of an agreement -- written or verbal, a promise to pay someone a certain amount of money -- for or not for something in return, or when a person promises to not perform a certain action. There is always some type of obligation involved in a contract, and the obligation may or may not fall on the shoulders of all parties involved.

Contract Formats

There are five formats that a contract can come in:

  • Formal
  • Informal
  • Written
  • Oral
  • Plain understood

When entering into a contract with a person or another entity, it is very important to determine whether or not the agreement needs to be in writing in order for it to be enforceable. In almost all cases, a written contract is the best choice because they are easier to enforce in the eyes of the law.

Examples of Contracts

Three examples of contracts are:

What Are Independent Contracts?

Independent contracts are made when the mutual promises made to one another are in no way relevant to each other. Each party must uphold their promises to one another, but the promises do not impact one another's ability to fulfill their promises.

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