What are the types of contracts?

In Michigan, there are three main types of contracts: verbal, written, and implied. Verbal contracts are contracts in which the terms of the agreement are spoken or orally discussed between two or more parties. This can include any kind of agreement between two or more people with mutual intent to enter into a legally binding agreement. Verbal contracts can be verbal agreements that are not necessarily written down or put into writing. Written contracts are contracts that are put into writing and signed by both parties, as well as any witnesses that may be present. Written contracts are beneficial when settling disputes, as they provide the terms and details of the agreement between the two parties in full detail. Implied contracts are contracts that are not expressed in words, but are created by the actions of the parties involved. An example of an implied contract would be when two parties agree to purchase/sell a product without a written contract. In Michigan, all of these types of contracts are legally binding and can be enforced in a court of law, though written contracts are usually the best option for ensuring that all parties involved are in agreement about the details and conditions of the agreement.

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