Question

Hi, can you answer this question in more detail?

Subject: Insurance Practices

Q3：

There are two types of contracts, namely, simple contracts and contracts by deeds; discuss the characteristics of these two types of contracts. Also, analyze the three types of defective contracts with brief examples.                                                                                                                                                

Answer 1

ANS:- THERE ARE TWO TYPE OF CONTRACT (1) SIMPLE CONTRACT AND, (2) CONTRACT BY DEED

(1) SIMPLE CONTRACT-

A CONTRACT MADE BY ORALLY OR IN WRITING ,RATHER THAN AN CONTRACTS MADE UNDER SEAL, SIMPLE CONTRACT REQUIRED CONSIDERATION TO BE VALID BUT SIMPLE CONTRACT MAY BE IMPILDE FROM THE CONDUCT OF PARTIES BOUND BY THE CONTRACT, DEBTORS USED SIMPLE CONTRACT AS ONE OF THREE ACCEPTED FORM OF UNSECURED DEBT INSTRUMENT IN 1828,THE PARLIAMENT AS SO FAR THAT ORAL ACKNOWLEDGE OR PROMISES COULD NOT BE USED AS EVIDENCE TO PROVE THE EXISTANCE OF A SIMPLE CONTRACT,

A SIMPLE CONTRACT IS ANY CONTRACT THAT IS NOT SIGNED AS A DEED, CONTRACTS THAT ARE SIGNED AS A DEED CARRY ON SIGNATURE OF THE PARTIES AND THE SIGHNATURE OF ONE OR MORE WITNESS . GENERALLY YOU'LL TAKE THE TO A NOTERY PULIC NOT ,

A SIMPLE CONTRACT DOES NOT FOLLOW THESE FORMALITIES.TO CREATE A SIMPLE CONTRACT THE PARTIES ONLY HAVR TO SIGN ON THE DOTTED LINE,THERE ARE NO SPECIAL FORM OR LANGUAGE ,NO REQUIREMENT FOR A WITNESS SIGNATURE AND NO NOTARIZING.IN FACT THE RULES ARE SO RELAXED THAT YOU DONT EVEN HAVE TO WRITING ANYTHING DOWN AT ALL.AN ORAL CONTRACT OR "HANDSHAKE AGREEMENT"IS PERFECTLY VALID MOST OF THE TIME.

(2) CONTRACT BY DEEDS-

A CONTRACT BY DEED IS A VERY HARD PROCESS.IN THIS CONTRACT THAT ARE SIGNED AS A DEED CARRY THE SIGNATURE OF THE PARTIES AND THE SIGNATURE OF ONE OR MORE WITNESSES ,GENERALLY YOU WILL TAKE TO CONTRACT NOTARY PUBLIC,PRODUCE SOME IDENTIFICATION AND SIGN THE DEED IN THE NOTARY PRESENCE, THE IDEAS TO A CREATE A SERIOUS AND LEGAL CHECK THAT YOU ARE WHO YOU SAY YOU ARE.THAT WAY EVERYONE CAN BE SURE THAT THE DOCUMENT WAS SIGNED. WITNESSES AND ACKNOWLEDGED IN THE MANNER REQUIRED BY STATE LAW.

4 KIND OF DEFECTIVE CONTRACTS

(1) RESCISSIBLE- VALID UNTIL RESCLIEND HAS ALL ESSENTIAL REQUISITES BUT BEACAUSE OF INJURY,DAMAGE TO ONE OF THE PARTIES,THE CONTRACT MAY BE RESCINDED .

(2) VOLIDABLE- VALID UNTIL ANNULLED HAS ALL ESSENTIAL REQUISITIES BUT BEACOUSE OF DEFECT IN CONSENT CONTRACT MAY BE ANNULLED

(3) UNENFORCIABLE- RCEACANNOT BE SUEDIENFORCED UNLESS RATIFIED, NO EFFECT , NOW BUT MAY TAKE EFFECT UPON RACTIFICATION.

(4) VOID- NO EFFECT AT ALL CANNOT BE RATIFIED VALIDATE ,