The difference between informal and formal contracts is:

Formal contracts are much more effective than informal' contracts becasue they show a seriousness about itnent to contract that informal contracts do not show.

Informal contracts are callled informal contracts only because no special form or method is required for their creation. They are as valid as formal contracts adn

can be sued upon if breached.

Formal contracts require a seal to authenticate them.

Formal contracts create different rights than simple contracts.