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Contract Experiences Paper

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Submitted By jbvet
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Contracts we use them on our daily lives even if we do not want to acknowledge them. They are agreements between two or more groups, written down to ensure both parties have an agreement on what is expected of them. There are many types of contracts and we use them for different situations, from getting married to buying a house. We are going to explain some types of contracts and how we have used them in our daily lives.
Adhesion Contracts is one party has more power than the other in creating a contract. It also means the party that has the most advantage leaves the other party with no option. It is also known as “take-it-or-leave-it contracts”. It is not necessary that all adhesion contracts are unacceptable contracts, but in some cases one party has a superior bargaining benefit, leaving no option for the other party. For instance, this can happen in monopolistic markets. An example of adhesion contract is an insurance contract. The company or the agent has the most power, while the policyholder only has the right of rejection. They cannot create a new contract. It is very important to read the contracts carefully.
Aleatory Contract is a type of contract which the parties involved does not have to perform a particular action until the event occurs like a natural calamity. Both parties may assume risks. Aleatory contracts are commonly used in insurance policies. The insurer does not have to pay until a disaster occurs, such as a fire, or other property losses. Bilateral contract also known as a two-sided contract because of the two-way promises made by the both parties involved in the contract. An example of bilateral contract is when a house is in sale. The home owner agrees to pay the seller a certain amount of money in exchange for the title of the home. Unilateral contract is when one party is legitimately obligated to support the

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