Asked by Sewisha Thabo Lehong on May 01, 2024
Verified
While negotiable instruments and recognizances are examples of informal contracts,letters of credit and contracts under seal are examples of formal contracts.
Negotiable Instruments
Financial documents that guarantee the payment of a specific amount of money, either on demand or at a set time, and are freely transferable from one party to another.
Recognizances
Formal acknowledgments or commitments, often recorded in legal documents, where an individual pledges to perform an act or adhere to an agreement.
Formal Contracts
Formal contracts are legally binding agreements that require a specific form or method of creation to be enforceable.
- Discern the differences among express, implied, unilateral, and bilateral types of contracts.
Verified Answer
MW
Michael William CandeloroMay 03, 2024
Final Answer :
False
Explanation :
Formal contracts are those that have a special form or must be created in a specific manner.The Restatement (Second)of Contracts identifies the following four types of formal contracts: a)contracts under seal; b)recognizances; c)letters of credit; and d)negotiable instruments.
Learning Objectives
- Discern the differences among express, implied, unilateral, and bilateral types of contracts.