Types of Contracts

"How many types of contracts are there?" If we consider this question mathematically, it can be said that it is an incomplete problem. In reality, there are many types of contracts: purchase and sale, agency, commission, leasing, safekeeping, warehousing, insurance, advertising services, and countless other types of contracts. Therefore, when classifying contracts, people often rely on different criteria. Typical criteria include the type and content of the contract.

Additionally, according to provisions in Article 406 of the Civil Code 2005, based on criteria, contracts can also be classified into the following types:

- Bilateral contracts are those in which each party has obligations to the other, such as the seller providing equipment and the buyer receiving the goods and paying.- Unilateral contracts are those in which only one party has obligations, such as Company A promising to reward employee X if the sales target is met. If X meets the agreed requirements, Company A must fulfill the obligations as committed.- Principal contracts are those whose validity does not depend on ancillary contracts. For example, A buys 100 computers from B and hires B to maintain those computers during their use; the principal contract between A and B is the purchase, the ancillary contract is the computer maintenance; the validity of the principal contract does not depend on the ancillary contract.- Ancillary contracts are those whose validity depends on the principal contract. If the principal contract expires, the ancillary contract also terminates.- Contracts for the benefit of a third party, typical in insurance contracts. For example, a father buys insurance for his child, whereby a third party benefits from the fulfillment of the contractual obligations.- Conditional contracts are those whose execution depends on the occurrence, change, or termination of a particular event. For example, travel agency tickets or franchised stores can only operate if they meet all the conditions stipulated by law or the provider.

Thus, in practice, there are numerous types of contracts used in different situations and specific purposes. However, generally, they are classified into one of the above-mentioned contract types.

Relevant documents:

Civil Code 2015

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