As businesses and individuals enter into contracts, agreements are necessary to ensure that both parties are aware of the terms and conditions of the deal. There are various forms of agreement which can be used depending on the nature of the transaction, and it is important to have a clear understanding of the different types of agreements and their respective uses.
1. Written Agreements
Written agreements are the most common form of agreement and are commonly used in business transactions. This form of agreement is generally preferred as it serves as a written record of the terms and conditions of the deal, which can be referred to in case any issues arise in the future. Written agreements typically include details such as the parties involved, the terms and conditions of the deal, the payment terms, and the deadline for completion.
2. Verbal Agreements
In some cases, verbal agreements may be used for informal transactions such as buying or selling goods. While this form of agreement is not legally binding, it is often backed by the trust and understanding between the parties. However, verbal agreements may be subject to discrepancies or misunderstandings, which could lead to disputes.
3. Express Agreements
Express agreements are those that are explicitly stated by both parties involved. This type of agreement can be either written or verbal, and the terms and conditions are clearly mentioned and agreed upon by both parties. Express agreements leave no room for ambiguity, and the parties are legally obligated to abide by the terms and conditions mentioned in the agreement.
4. Implied Agreements
Implied agreements are those that are inferred from the actions and behavior of the parties involved. This form of agreement is based on the intentions of the parties, which are implied by their conduct or actions. Implied agreements are often associated with recurring transactions, such as monthly rent payments or regular purchases, which do not require a formal written contract.
5. Executed Agreements
An executed agreement is one in which the parties have fulfilled their obligations and completed the transaction. This type of agreement is typically used in business transactions such as purchase or sale agreements, where the terms and conditions are agreed upon, and the transaction is completed by the parties involved.
In conclusion, it is important to understand the different forms of agreements and their uses to ensure that the terms and conditions of any deal are clearly understood and agreed upon by all parties. Written agreements are the most common and preferred form of agreement, but verbal, express, implied, and executed agreements may also be used depending on the transaction type and circumstances.