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Contracts can be classified according to their formation, including consensual, real, and formal contracts. Consensual contracts are formed by the mere agreement of the parties, without the need for a written contract. As long as both parties agree, the contract is considered perfected. Written agreements are not always necessary, as long as there is mutual agreement between the parties. For example, in a contract of sale, if one party agrees to sell an item for a certain price and the other agrees to buy it, a contract is formed without a written agreement.