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there are a number of different types of contracts and it is important to distinguish between them this is important because there are specific rules that apply to certain types of contracts namely with regards to how they are formed and whether or to what extent they are enforceable between the parties we will now look at six different types of contracts a first distinction is between unilateral and bilateral contracts in a unilateral contract there is one party that makes a promise while the other party performs an act for example jose promises to pay george 10 if george cleans joses driveway if and when george has cleaned the driveway the money is owed while jose made a promise george did not promise anything conversely in a bilateral contract both parties promised something in our previous example jose still promises to pay george 10 for cleaning his driveway but now because the contract is bilateral george at the same time promises to clean the driveway in return for josephs pr
