Types of contracts In commercial relations there are different types of contracts depending on the type of arrangement that is agreed upon. Also each type of contract is distinguished by the particular terms and conditions it uses. Let's look at some of the most common: 1. The sale is the contract by which one party transmits or undertakes to transmit something or a right to the other party in exchange for the latter paying a certain price. Examples: Contracts for the sale of properties, insurance contracts. 2. The loan is a contract whereby one party delivers to another money or something fungible with the commitment to receive in return the same amount of the same kind and quality. Examples: Bank loan contracts, property rental contracts. 3. Through the agency contract, a person is obliged to provide a service or do something, on behalf of or commissioned by another. The agency contract is one by which one of the parties, called the agent, manages, generally in exchange for a commission, one or more contracts in the interest and on behalf of the other party, called the principal. Examples: Service contracts 4. The guaranteed transaction is one in which the creditor is given the certainty, security, guarantee, beyond the mere word or promise of the debtor, that he will receive his money. This guarantee can take various forms. An example of this is when a person buys a vehicle and finances the sale in a bank, in case the loan payment is not made, the bank can keep the vehicle. The vehicle guaranteed that debt. Example: Car financing. Mortgage financing contract. 5. The transport contract is a contract to transport both people and goods, whether by land, river or air. To be configured, the following requirements must be met: The object of transportation is merchandise or any commercial object, or people. That the carrier is a merchant or habitually engaged in verifying transportation for the public. Examples: Shipping agreement with a supplier such as UPS; air ticket purchase.

Exercise:

-Pedro Prez visits the ABCD car dealership to buy a truck to transport bananas. The cost of the vehicle is $30,000.00. -In order to acquire the vehicle, Pedro Prez seeks financing with Bank XYZ. -In the event that Pedro Prez does not pay Bank XYZ, said bank may take away the vehicle. -Once Pedro Prez acquires the vehicle, he uses it to transport the bananas, from the property of the farmer Juan Goodagricultor, to the market place. For this management, Pedro Prez charges $500.00 for each trip. -The sale of Juan Goodagricultor's bananas in the market square is managed by Juan del Rey. Juan del Rey is in charge of selling Juan Goodagricultor's bananas in exchange for a commission of 5% of the amount of the sale.

1. Identify and classify each of the contracts that are structured in this situation, according to the types of contracts. 2. Identifies and explains at least two (2) similarities and differences between the contracts identified in the exercise.