Original Source: US Legal

“A contract may relate to virtually any type of transaction.  Contracts may relate to performance of a service, sale, or transfer of ownership of property, or a combination of these types of transactions. Parties to a contract may be individuals, partnerships, corporations, or even governments.  There may be more than two persons to a contract.  With some exceptions, only the parties making a contract have rights or duties under the contract.

It is possible for other persons to have rights and duties with respect to a contract other than the original parties to the contract.  For example, rights under a contract may be assigned to a third person.  Also, a contract may be made for the benefit of a third person as in a life insurance contract.  A life insurance contract involves the insurance company, the insured, and the beneficiary.

A valid contract is a legally-binding contract that is made in accordance with all legal requirements. A voidable contract is an agreement that would be binding and enforceable except the circumstances surrounding its execution, or the fact that one of the parties lacks “capacity,” makes the contract voidable at the option of one of the parties.  For example, a person who has been forced to sign an agreement may avoid being bound by the agreement. A void agreement is an agreement which is without legal effect.  For example, an agreement which deals with the performance of an illegal act is void…”

https://contracts.uslegal.com/types-of-contracts/

Contributors: Open Source
Categories: SIG U Resource, Tool
SRC Type: Contract Development, Sourcing