Introduction

Read the overview below and complete the activities that follow.

Contracts are classified in a number of different ways. Different classifications are useful for different purposes. This question reviews the primary ways by which we classify contracts.

CONCEPT REVIEW:

Review the section "Classification of Contracts" in your text to understand the differences among bilateral, unilateral, express, implied, formal, and informal contracts and the three different ways of categorizing contracts: $(1)$ bilateral vs$.$ unilateral; $(2)$ express vs$.$ implied, and $(3)$ formal vs$.$ informal.

Read the following scenarios.

Letter of Credit: A contract involves a letter of credit for Zach to pay $$4,000$ upon receipt of an invoice. This letter of credit is which type of contract?

$$4,000-$Chimney: Gary promises to pay Francis $$4,000$ in exchange for his promise to repair the chimney on Gary's house on June $14.$

Medical Emergency: Jonah has a medical emergency and sees the doctor without prior negotiation about payment.

Written Terms: Mark and Lindsey reach an agreement and set forth all the terms for their contract in writing. No seal is affixed.

Handwritten Agreement: Bethany and Nick have a handwritten agreement for the lease of Bethany's apartment to Nick.