What Are the Three Types of Agreements

When it comes to legal matters, it is important to understand the different types of agreements that can exist between parties. Understanding these agreements can help individuals and businesses navigate their legal relationships and avoid any potential legal disputes. In this article, we will discuss the three types of agreements that exist in the legal world.

1. Oral Agreements

The first type of agreement is an oral agreement. An oral agreement, also known as a verbal agreement, is a type of agreement that is made verbally between two or more parties. This type of agreement does not require any written documentation and can be difficult to enforce in a court of law. However, an oral agreement is still considered legally binding, and parties who fail to fulfill their obligations under an oral agreement can face legal consequences.

It is important to note that oral agreements are not always recommended, as it can be difficult to prove the terms of the agreement if there is a disagreement between the parties. It is always recommended to have a written agreement in place, even if it is a simple one.

2. Written Agreements

The second type of agreement is a written agreement. A written agreement is a type of agreement that is documented in writing and signed by all parties involved. This type of agreement is much easier to enforce in a court of law, as the terms of the agreement are clearly spelled out on paper.

Written agreements can take many different forms, including contracts, leases, and employment agreements. These agreements can range from simple to complex and can include legal terminology that may require the assistance of an attorney to understand fully.

3. Implied Agreements

The third type of agreement is an implied agreement. An implied agreement is a type of agreement that is not documented in writing or verbally agreed upon but is assumed to exist based on the actions and behavior of the parties involved.

For example, an implied agreement can exist between an employer and an employee regarding the employee`s job responsibilities, even if these responsibilities are not explicitly stated in a written agreement. Implied agreements can also exist between friends or family members regarding loans, gift-giving, or other financial matters.

In conclusion, understanding the different types of agreements that exist in the legal world is crucial for individuals and businesses alike. Oral agreements, written agreements, and implied agreements all have different characteristics and legal implications. It is always recommended to consult with an attorney to ensure that any agreement is legally binding and enforceable.