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Types of Legal Contracts

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Before you read the passage, talk about these questions.

1. What type of information does a contract usually contain?

2. Why would you work with an attorney when writing/drafting a contract?

Read the job advert and mark the following statements as true or false.

1. The new attorney will work mainly with manufacturing companies.

2. The job does not involve representing clients in dispute.

3. Knowledge of loan agreements is not necessary.

  Smith & Stanwell ATTORNEYS seek a business attorney to join our team  


The candidate must have extensive knowledge of legal contracts.

Our firm works with many manufacturers. You must be able to drawrequirements contractand a distribution agreement. Often, clients seek a standard agreement of sale, but a severable contract may be needed as well. Further, you must be able to recognize an adhesion contract or a breach of contract and fight for our clients if they have been wronged. This includes implied contracts.

It will be up to you to maintain and update contracts of employment, to guarantee that our clients are following all legal guidelines. Some companies may require a bilateral contract or a unilateral contract when working with outside agents.

Finally, you must have the financial and legal knowledge to clients with business loan agreements.

Send your résumé to the address below.

Smith and Stanwell * 105 Mountain Ave. * Pelton, WI 53274


Match the words (1-6) with the definition (A-F).

1 ___ agreement of sale

2 ___ implied contract

3 ___ loan agreement

4 ___ contract of employment

5 ___ bilateral contract

6 ___ unilateral contract


A. a legally binding agreement between employers and employees

B. a document that details the terms and conditions of a purchase

C. an agreement for one party to pay for another’s party work

D. a contract with terms that have not been explicitly stated or written

E. a contract between a lender and a borrower

F.a contract in which both parties exchange promises to perform certain things


Look at the following paragraphs, and decide what kind of contract is being described or talked about. Underline the key words and expressions that helped you to identify the subject of each paragraph.

Kinds of contract:

loan agreement(APR – annual percentage rate; the interest that has to be paid)

an unspoken (implied or understood contract between a shop and a customer)

a tenancy (agreement)(pcm – per calendar month)

franchise agreement(between a franchiser – people who license a franchise – and a franchisee – the people who run the franchise)

employment contract(full-time)

terms and conditions of sale(purchase agreement)

a verbal contract (that has gone through the offer, acceptance and consideration stages)

1. I went into the supermarket and chose the items that I wanted. As soon as my basket was full, I headed for the checkout.

2. My cousin Bob said he was going to get rid of his computer and buy a new one. I said that I needed a computer and suggested I bought his old one. Anyway, we agreed on a price, I gave him a £50 deposit, and agreed to pay the balance in installments over the next three months. I’m going round to collect the computer this evening.

3. The property is unfurnished, and the rent is £650 pcm, which has to be paid monthly in arrears. Electricity, gas and phone bills are extra. There’s a communal garden and a communal parking area, for which I also have to pay a nominal maintenance fee. The landlord is responsible for any repairs to the property. I’m not allowed to sublet at any time. I’ve signed the lease for 18 months.

4. We’re opening our own branch in the town centre next week. The deal is fairly simple: we get the right to use the company’s name, their trademark, their trade names and products, wear their uniforms and use their stationery. They also provide our staff with all the necessary training, give us invaluable managerial assistance and provide advertising materials. In return, we have to meet specific requirements, such as quality of service, maintaining good customer relations, and following the company’s standard procedures. Oh, and buy all the products we sell from them, naturally.

5. The total amount you are borrowing is £9,000 at an APR of 6.6%. Repaid in monthly installments over 3 years, this gives you a monthly repayment figure of £275.46, totaling £9,916.56. You have opted out of the repayment protection premium scheme. If you wish to make an early settlement, the figure above will be recalculated accordingly. As soon as you sign a form, your funds will be released into your bank account. Please note that penalties will be applied if you default on repayments.

6. This appointment is for a period of two years, following a 4-week probationary period. Your remuneration package includes an annual gross salary of £32,000. You are entitled to sick pay and 6 weeks annual leave after you have been with us for 3 months. Your hours of work are 9 to 5 Monday to Friday, although you may be asked to work overtime during busy periods. The company has its own medical and pension schemes which you may join.

7. The total cost is £2,870, which is payable in full before the goods can be dispatched. Alternatively, we can arrange credit terms, which are interest-free for the first six months. All goods are covered by the manufacturer’s warranty, which is valid for one year. If you are not happy with your merchandise, it can be returned for an exchange or full refund (but please note that this is valid for 28 days only, and we will need to see your receipt or other proof of purchase).

5. Listen to a conversation between a client and a legal assistant. Mark the following statements as true (T) or false (F).

1 __ The client wants to discuss two different matters.

2 __ The client wants to sever an implied contract.

3__The assistant has confirmed an appointment with the attorney.


6. Listen again and complete the conversation.

Assistant:Sure. What is this 1 ____________ ?

Client: I need to have some legal contracts 2_________ _________ .

Assistant: Okay. Are there any details that I should give her 3________ ?

Client: We need 4 _______ ________ for one of our partners. We’ve been working with an implied contract.

Assistant: I’ll 5________ _________ _________ .

Client: And I’m afraid that one of our other partners may be in breach of contract.

Assistant: That’s too bad. I’ll tell her that.

Client: Does she have any 6________ _________ this week?


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