example of personal contract
it can describe a contract that binds only a single individual as opposed to a group or company that the person represents. it can also refer to a contract that only binds the single person and not their heirs, successors, or assignees. if a member of the corporation wishes to enter into a contract apart from the corporation, they will enter into a personal contract, in order to prevent legal issues from overlapping with their involvement with the corporation. personal contracts need to follow all the basic requirements for a valid contract in order to be enforceable under law. the main reason why a personal contract should be used is to prevent confusion, especially when one or both of the parties serves as a representative or an agent for a business organization.