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Classification of contracts can be grouped based on their perfection or formation. The three main types are consensual, real, and formal contracts. Consensual contracts are established solely through the agreement of the parties involved, without the need for a written contract. As long as both parties agree, the contract is considered to be in its perfected stage. An example of a consensual contract is a verbal agreement between two parties to buy and sell a ball pen for a specific price, demonstrating that a written agreement is not always necessary for a contract to be valid.
