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formal contract


  as an issue of Status (read more...)

formal contract, defined:

a contract that is created using a set prescribed formalities. Historically, a formal contract was an agreement written under seal, but the term now includes other contracts specified by law including a letter of credit and a negotiable instrument. While the legal novice might mistake the term, formal contract, to mean simply a written contract, astute readers of this dictionary will know that a formal contract is a designation that denotes something important about its status.

formal contract, as it might be used:

We seldom see the need for a formal contract.
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