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Essential elements of a contract

Contracts may be classified as– one, simple contracts. Two, formal contracts.

Contracts may be classified as– one, simple contracts. Two, formal contracts. A contract under a seal, a deed. If a contract is not under seal, it is described as a simple contract.

This is so even though a simple contract may in fact deal with complex matters and be in writing, but not under seal. Unless the law requires a special form, a contract may be an oral or in writing.

The disadvantage of an oral contract is that in the event of a later dispute, it may be difficult to produce evidence of the terms of the agreement. The more important the contract, therefore, the more essential it is to reduce the contract into writing.

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Introduction to Business Law

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