Contract law in Australia is a complex and ever-evolving area of law. It is essential for businesses and individuals entering into contracts to have a good understanding of the different types of contracts that exist in Australia. In this article, we will discuss the different types of contract law in Australia.
Express contracts are the most common type of contract used in Australia. They are formed when parties clearly and explicitly agree to the terms of the contract. Express contracts can be written or oral, but it is always recommended to have a written contract to avoid any misinterpretation of the terms.
Implied contracts are contracts that are not explicitly stated in writing or orally, but rather created by the conduct of the parties involved. For example, if a company has a regular supplier of goods, an implied contract is created between them even if there is no written agreement. This type of contract is sometimes referred to as a “quasi-contract” or a “constructive contract.”
Unilateral contracts are created when one party makes a promise in exchange for an act or performance by the other party. For example, if a company offers a reward for the return of a lost item, a unilateral contract is created between the company and the person who finds the item.
Bilateral contracts are the most common type of business contract. They are formed when both parties make promises to each other in exchange for something of value. For example, when a company hires an employee, a bilateral contract is created whereby the company promises to pay the employee for their work, and the employee promises to perform the work to the best of their ability.
Executed contracts are contracts that have been fully performed by both parties. For example, if a company hires a contractor to build a house, once the house is built and the contractor is paid, the contract is considered executed.
Executory contracts are contracts that have not yet been fully performed by both parties. For example, if a company hires a contractor to build a house, but the house is not yet built, the contract is considered executory.
In conclusion, understanding the different types of contract law in Australia is essential for businesses and individuals to protect their legal rights and obligations. Whether you`re entering into an express contract, an implied contract, a unilateral contract, a bilateral contract, an executed contract, or an executory contract, it`s crucial to seek legal advice to ensure that your contract is legally binding and enforceable.