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There are various types of contracts, each with specific rules regarding their formation and enforceability. This tutorial outlines six types of contracts, beginning with the distinction between unilateral and bilateral contracts. In a unilateral contract, one party makes a promise, while the other performs an act; for example, if Jose promises to pay George $10 for cleaning his driveway, the payment is owed once George completes the task. In contrast, a bilateral contract involves mutual promises; in the same scenario, both Jose and George would agree: Jose promises to pay, and George promises to clean the driveway. Understanding these distinctions is crucial for navigating contractual obligations.
