A contract is a legally binding agreement in which property‚ goods or services are provided in exchange for something of value‚ such as money. Some common types of contracts into which an individual might enter include:
- A purchase agreement for a home;
- A sales contract or « installment purchase plan » for an automobile‚ appliance‚ or other major purchase‚ including catalogue purchases;
- A lease;
- Door-to-door sales agreements;
- An authorization to perform home repairs or services;
- A mortgage or personal loan;
- An employment contract.
Contracts are not always written agreements. A verbal agreement may be an enforceable contract. A simple promise, however, is not usually a contract. Many of our day-to-day transactions actually involve a contractual relationship. Certain contracts may be required to be in writing. For example, contracts for the sale of real estate are usually required to be in writing.
Contracts are usually legally binding. Be sure you understand exactly to what you are agreeing. If you have questions, see your lawyer before you sign. If you agree to something which is not in your interest, an attorney may not be able to undo the damage.