types of contracts
Fixed-price contracts are also the most common type we see in state and local procurements. President Obama officially endorsed a preference for fixed-price contracts in a March 2009 memo to heads of executive departments and agencies. He wrote, âThere shall be a preference for fixed-price type contracts.
A bilateral contract is an agreement in which each of the parties to the contract makes a promise or set of promises to each other. For example, in a contract for the sale of a home, the buyer promises to pay the seller $200,000 in exchange for the seller's promise to deliver title to the property.
An unwritten, unspoken contract, also known as a contract implied by the acts of the parties, which can be either an implied-in-fact contract or implied-in-law contract, may also be legally binding. Implied-in-fact contracts are real contracts under which the parties receive the benefit of the bargain.