Emma - Contracts

Formal Contracts:
A Formal Contract is one that has been written out and needs to be signed by both parties. Formal Contracts are legally binding and often used when there is money involved so with employment, buying a house etc. These contracts also include loads of Legal Terminology that can confuse people and end up with some parties being misinformed.

Informal Contracts:
Informal Contracts is a type of contract that is usually viewed as a few words and a handshake. You do not need to sign anything for this type of contract however they do not usually hold up in court if there is some misunderstanding with money. These usually occur when both parties trust each other. A person enters Informal Contracts on a day to day basis, even when ordering a take away.

The contract with Sky was an Informal Contract because nothing had to be signed for us to start doing the work that was required of us. This means that while this type of contract can not usually be proven in court, both parties trust each other to meet the expectations of the other so a formal contract is not needed.