What are the Different Types of Contracts?

what-are-the-different-types-of-contracts
What are the Different Types of Contracts?

A contract is an agreement between two entities or individuals, which serves as legal protection for both parties involved in a potential business deal. There are different types of contracts, and each determines the rights and duties of both sides. A specific type of contract regulates the risks and expenses for the contractor. 

Named and unnamed contracts

A named contract is a contract that is explicitly indicated in the Civil Code (for example: a sales contract), an unnamed contract is a contract to which there is no direct reference in the Civil Code (for example, an outsourcing contract).

Real and consensual contracts

Real contract - for the conclusion, it is necessary not only the consent of the parties, but also the transfer of the subject of the contract (for example, loan agreement), a consensual agreement - all parties agree on all the terms of the contract, which are named in the legislation or defined as essential (for example, the contract of sale). The real contract is considered concluded from the moment of transfer of the thing, the consensual agreement - from the moment of signing by the parties.

Simple and mixed contracts

A simple contract consists of agreements on a single subject; a mixed contract may include the features of several contracts at the same time.

Compensated and gratuitous contracts

A compensated contract presupposes counter-compensation by the other party (a contract of sale), a gratuitous contract is concluded without receiving counter compensation (a deed of gift).

Bilateral and multilateral treaties

Bilateral - where the parties are two parties, there can be more than two participants in a multilateral agreement, for example, a leasing agreement (tripartite: seller - lessor - buyer). The agreement is concluded in favor of the direct parties to the contract. The right to demand the execution of the contract belongs only to the parties specified in the contract. The contract drawn up in favor of third parties is the contract executed in favor of the person specified in the contract who is not a party to the contract.

Mutual agreements

Mutual agreements are contracts where rights and obligations arise from the two sides mutually to each other. These include the vast majority of contracts concluded in business.

Public contract

A public contract is a contract that must be concluded with everyone on the same terms. One of the parties is necessarily an entrepreneur (for example: buying and selling in a store).

Mutually agreed treaties and interconnection agreements

Mutually agreed contracts are contracts where the parties mutually agree rights and obligations. Agreement of accession - the terms of the agreement are determined only by one of the parties (for example: an agreement on the provision of communications services).

BT Legal Affairs Department