The 6 types of contract (and their characteristics)

There are many occasions where we must put in writing the rights and obligations that we have in relation to a convenient agreement for any eventuality, through a document that has legal character, known globally as a contract. This can be defined as a legal act in which two or more people intervene in order to establish rights and create obligations for the interested parties.

The contracts come from the Roman Empire, where the established pact was contemplated and it was manifested in two ways: in a ‘Pactum’ (when there was no name or cause) and in the ‘Contratus’ (agreement between two or more people), which was established in Roman law and are the precedents of contracts current.

In this article you will not only find information about what a contract is, but also about what are the types of contracts that exist for each daily or business need.

Characteristics to enforce a contract

To give validity to a contract, the signatories have to meet certain legal characteristics to be able to exercise rights and acquire obligations, within these requirements are:

• Being over 18 years.
• If you are under 18 years of age, you must be emancipated, that is, be independent.
• If they are under 18 but over 16 and are not emancipated, they must have the permission of their parents or guardians.
• If you are mentally disabled or have a degree of cognitive impairment, a legal guardian must assume responsibility.

Each country and / or state has its own established contractual requirements but in general, the basic requirements are the same. The differences arise due to the socio-cultural and legal reality of each federal entity.

Essential elements of a contract

These are the factors that you must take into account so that your contract has legal legal validity.

1. Ability

It is the legal provision to be able to exercise the established rights and acquire the obligations set forth in the contract.

2. Consent

It is the volitional element or will that has been manifested under consent.

3. Object

It refers to the activity or conduct that the debtor agrees to carry out for the benefit of his plaintiff.

4. Cause

It is the promise or delivery of an object or service by the other party.

5. Shape

It refers to the way of carrying out the contract either in writing before the notary or with the presence of witnesses.

6. Natural elements

They are terms incorporated into the contract that can be eliminated at the request of the parties, without losing legal validity.

7. Accidental elements

They are special clauses that are established by the parties without them going against the law, good custom and public order.

Classification of contracts.

Contracts can have different categories depending on the need of the matter established by the parties.

1. Unilateral

They are those contracts that derive obligations established for a single party.

2. Bilateral

On the contrary, in these contracts both parties must comply with the obligations described in the contract.

3. Onerous

They are contracts in which the people involved have obligations and economic advantages.

4. Free

Contract in which the beneficiary does not make any sacrifice, but the other party, since he only receives a burden or tribute.

5. Commutative

They are contracts where the parties have obligations and stipulated charges, similar and reciprocal.

6. Random

They do not present equal benefits between the contracting parties since one of the parties depends on whether or not an event arises.

7. Main

They do not need any other agreement or agreement to survive.

8. Accessories

They are contracts that require the fulfillment of an agreement in order to last.

9. Instantaneous

These are fulfilled immediately, that is, they are carried out at the same moment they are carried out.

10. Successive tract

They are those contracts that regulate several habitual deliveries that last for a long time.

11. Consensual

Contracts that are formed only because the parties so desire.

12. Formal or solemn

These contracts are used when the law expresses or indicates the appropriate way to do so.

13. Public

It is a type of contract where one of the parties is a public administration when it exercises that role.

14. Private

They are contracts concluded by, as their name says, private entities, which have no contracting power or are not public administrations.

15. Nominated or typical

They are those regulated by law That is, they are already pre-established

16. Unnamed or atypical

They are made up of a contract and at the same time, it is made up of other contracts related to a certain or large extent.

Types of contracts

Know the types of contracts that you may need for any type of eventuality in your life.

1. Prenuptial contracts

Also called prenuptial agreement or premarital agreement, They are written contracts that a couple carry out before marrying with the purpose that the properties obtained, such as businesses, financial assets, stocks, savings accounts and in some cases debts, do not become part of the marital estate.

Spousal support in case of divorce and distribution of individual possessions in case of death are also included.

2. Purchase contract

It is that bilateral, onerous, typical and consensual contract, in which one of the parties gives something to the other in exchange for a price in money. They are classified according to:

2.1. Your payment method

This type of contract gives flexibility when it comes to paying the cost, in accordance with the provisions of the law.

2.2. Delivery of reservation, deposit and signal

When making a purchase, for example a car or a house, and after making sure that everything is in perfect condition, the reservation is continued. The reservation is made through a subcontract between the seller and the buyer, where they establish the price of the reservation and the continuation of the sale.

The earnest money refers to the purchase and sale commitment within an established period with a payment on account, while the signal is a payment as a guarantee of the sale, if the buyer does not want to continue with the negotiation, loses the down payment or advance dice. On the contrary, if it is the seller who suspends the contract, it must return to the buyer double the payment for the deposit.

2.3. Installment price payments

This type of sale allows the seller to deliver the property and the buyer to pay the price in installments, in installments, or in installments. This is done in order that if the sale has a very high value, its purchase is made easier.

2.4. Postponed paid in cash

This refers to the delivery of the value of the property in a single payment, the buyer comes into possession of it once the contract is signed of sale and the seller can recover what was sold in case of cheating if a clause has been established that includes a guarantee of pay.

2.5. Sale of housing off plan

It is that sale that is carried out when a house is sold that has not yet been built, when the work is ready, the The seller must apply for the occupancy or habitability permit and the buyer must have a payment system to cancel the price.

2.6. With mortgage guarantee

It is done when the buyer does not have enough capital to buy the property. Therefore, he requests a mortgage loan from a bank, which guarantees the payment and demands the installment payments made by the buyer.

2.7. With reservation of domain

This refers to the fact that until the payment of the property is fulfilled, the property does not pass into the hands of the buyer.

3. Labor contracts

Are those contracts in which a natural person, who is known as a worker, agrees to work for another person, either natural or legal, known as an employer. The employee is under the supervision of the employer and the latter is obliged to pay a certain salary.

There are several types of employment contracts, among which we have:

3.1. Fixed-term employment contract

It refers to a contract between the employer and the worker that stipulates a certain period of time that cannot exceed one year. If the employee has a state-recognized professional title, the term of the contract is extended for two years.

3.2. Indefinite term employment contract

It is an employment contract which is not subject to a specific time and its termination takes place when one or both parties so decide.

3.3. Work contract per job

This document specifies that the moment the worker finishes his work, the contract comes to an end.

3.4. Working part-time contract

Also called ‘part time’, it is the one that determines if the worker has been hired to perform one day on a weekly basis, should not exceed 30 hours, regardless of how they are distributed.

3.5. Work contract to deal

In these contracts it is stipulated that the worker will receive his salary according to his performance during a certain period of time either daily, weekly or monthly.

3.6. Apprenticeship work contract

It can be said that it is a special employment contract. Since it establishes that an employee can impart learning either carried out by himself or through third parties, in a set time and conditions.

3.7. Professional practice employment contract

They are contracts that are intended to allow young people or adults who carry out academic studies to have a paid job.

3.8. Work contract for part-time private home workers

The workers of private homes are those who are dedicated to providing a service to one or more natural persons to carry out tasks related to the care and cleaning of the home. In these contracts it is established that the working day must not exceed 30 hours per week.

4. Insurance contracts

They stipulate an agreement between an insurer that has an obligation to compensate for damage or cancel a sum of money to the insured, upon verification of the event established in the contract. Within these contracts we have

4.1. Funeral insurance

They are those contracts in which an insurer bears the insured's funeral expenses once he or she dies.

4.2. Comprehensive insurance

They are contracts that include all the guarantees applicable to a specific event.

4.3. Group insurance

They are those contracts that cover several people or insured, such as the employees of a company.

4.4. Complementary insurance

They are those where there is the incorporation of another insurance, with the purpose of giving new guarantees or expanding the coverage of the client.

4.5. Accident insurance

They are those whose purpose is to grant compensation to the insured in case of suffering an eventuality that causes disability or even death.

4.6. Travel assistance insurance

They offer various solutions to different situations or problems that arise during a trip.

4.7. Auto insurance

They are the types of insurance that offer compensation due to automobile accidents, whether caused by the client or caused to him.

4.8. Health and sickness insurance

They cover the insured in the event of illness and reimburse the payment caused by medical expenses.

4.9. Fire insurance

Type of insurance that guarantees the client a sum of money for the loss of their insured assets in the event of fires, it can also include their repair or compensation.

4.10. Orphan's insurance

They are those whose purpose is to give a temporary pension to children under 18 years of age when the financial person responsible, either the father or the mother, dies.

4.11. Theft insurance

The insurer pays the client when he has been the victim of theft of his insured objects.

4.12. Transportation insurance

It is a contract in which an insurance company agrees to cancel a payment as compensation for damage caused during the transport of goods, although the transfer of goods is also included. Travellers.

4.13. Life insurances

It is one of the most demanded types of insurance, the insurer grants an amount established in the contract to the relatives of the insured once the death of him occurs on a date preset.

4.14. Home insurance

They cover damages produced in the home derived from any unforeseen event, whether they are domestic accidents that warrant medical assistance or any other specific situation.

4.15. Liability insurance

It is a contract which stipulates a repair or payment for damages caused by the client's actions.

5. Commercial contracts

Also known as commercial contracts are those that carry out legal-commercial business indicating the commercial activities according to the laws of each place.

One of the parties offers services or products in exchange for an established economic benefit, if both parties agree with the conditions set out in the contract, we proceed to comply with the settled down.

5.1. Commercial swap contract

Type of commercial contract in which a company grants a good, in exchange for another company to deliver another good. In simple words, it is giving one thing for another.

5.2. Commercial land transport contract

Contract in which it is established that a person called a carrier or carrier transfers either people or goods from one place to another in exchange for financial remuneration.

5.3. Insurance contract

This refers to the fact that a person, whether natural or legal, takes for himself and for a certain time all or some of the risks of loss or deterioration that run certain objects that belong to certain people, but with the obligation to compensate for any loss suffered or any other damage caused to said belongings.

5.4. Credit title contracts

They are those that are made through promissory notes, letters, letters of credit and checks and focus on the obligations that both the drawer and the beneficiary have. Which are established in the commercial laws for them.

5.5. Maritime trade contract

This type of contract stipulates the obligations demanded by the transport of passengers or goods through a maritime space, in charge of a transport company or a carrier. Which is carried out on board a boat, from a port of origin to the port of destination. Where a collection of money is perceived either through tickets or passages in the case of people and through freight if they are merchandise.

5.6. Partnership contract

Two or more people agree on something in common (business, companies, land, equipment, etc). With the purpose of distributing among them the benefits derived from said established agreement.

5.7. Association contract or participation accounts

They are contracts where it is established that two or more merchants are interested in one or more operations either instantaneous or successive, but with the exception that it does under a single name and with its personal credit. This person must render an account and share the profits and losses equitably with his partners.

5.8. Commission contracts and mandates

Commission contracts establish that one person can authorize another to execute and manage either one or more commercial businesses for free or receiving a monetary compensation, which must account for their performance.

Mandated contracts are those that deal with one or more commercial operations individually.

5.9. Agency contract

It is a type of commercial contract in which a commercial entrepreneur (agent) can promote and / or conclude operations on behalf of a principal. In an established area without assuming the risk of these operations, in exchange for monetary compensation.

5.10. Bank deposit contract

These specify the basic operations carried out in a bank. From which other bank movements such as check drafts, issuance of titles, among others, originate.

5.11. Loan contract

It establishes that one of the parties grants the other a certain amount of fungible things, that is, things that can be consumed. They are generally carried out through banks, insurance or loan agencies.

6. Artistic contract

Also known as an artistic work contract or a special work contract for artists in public performances. It is aimed at all people who work in the artistic environment and who participate in public shows such as concerts, theatrical performances, musical tours, either as an organizer, promoter, producer of an event.

These contracts regulate the employment relationship, forms of presentation of the service and the hiring of essential personnel for the shows. Which in turn have a series of clauses, which are known as:

6.1. Trial period

It refers to the time agreed between the employer and the worker, in which either of them can terminate the contract without claiming any reason and without payment of compensation. This trial period may not exceed five business days if the contract has a duration of two months, ten days if the hiring is not longer than six months and fifteen days for those contracts that extend for more than six months.

6.2. Contract period

It can be indefinite, temporary or determined. In the case of the temporary contract, it is limited by the number of actions, the performance of one or more presentations and the period of time in which the show reaches its its end.

6.3. Artist compensation

When the artistic work contact is agreed, the minimum wage that the worker will earn and the The employer will have the power to set the amount that he will pay, always respecting the minimum amount established.

6.4. Workday

This includes the public presentations that the artists make, the time that they are under the orders of the employer while the rehearsals, recordings or concerts are carried out. Regarding the working day during the tours, this will be regulated according to the established agreement. In the event that the contract does not regulate the working day, a special employment contract must be made and the provisions established for this purpose must be accepted.

6.5. Breaks and vacations

This clause establishes the rest time that the artist will enjoy, which is determined at one and a half days per week, after mutual agreement. If for any situation the established period cannot be met, the artist will have a break 24-hour uninterrupted or an accumulation of time can be established, not exceeding four weeks.

If there are non-working dates within the working calendar and the artist has professional commitments in a period, these can be transferred to other days. As for vacations, these will be annual with a minimum duration of thirty days and with remuneration.

6.6. Additional clauses

In artistic work contracts there are, in addition to the clauses explained, special stipulations according to the needs of the economic activity carried out. It may contain conditions of exclusivity, confidentiality, non-attendance and permanence.

6.7. expire of the job contract

The artist may terminate her employment contract when she deems it appropriate as long as a minimum notice of ten days is established. This can be stated verbally or preferably in writing and is included in the resignation letter.

There is a type of contract according to your needs, look for the one that suits your needs.