Formal contract
A formal contract is a
The legitimacy of a contract, however, does not rely upon whether a contract is formal or informal.[2] Both are considered binding, given all other elements of a contract exist. In which both parties agree to each comply with each other's wishes to a certain limit. Usually, the contract is formed by a greater authority, such as a government, or corporation.
The Twelfth Edition of Business Law: Text Cases (Clarkson, Miller & Cross), says that formal contracts are, "contracts that require a special form or method of creation to be enforceable." It uses negotiable instruments as an example of formal contracts, such as: checks, drafts, promissory notes, and certificates of deposit. These examples are all required to have special formation under the Uniform Commercial Code.[3]
References
- ^ "What is informal contract? definition and meaning". Archived from the original on 2020-09-18. Retrieved 2020-08-29.
- ^ "Informal vs. Formal Contracts: Examples, Differences & Definitions". Retrieved 2020-08-28.
- ^ Miller, and Cross. "Chapter 11: Contract Law." Business Law: Text and Cases. By Clarkson. 12th ed. Mason: Cengage Learning, 2012. 210. Print.