contract

an agreement that would be upheld by a court



of a commercial nature (involving business, property etc)


not applicable to personal situations such as relationships, going out to dinner etc.



not enforcable if one of the parties is

	i.   intoxicated
	ii.  mentally incapacitated
	iii. less than 18 years of age
	vi.  acting under duress (i.e. being forced to sign)
        v. ......


generally contacts are reduced to written documents and take effect when they are signed

verbal contracts may be binding but are difficult to prove (e.g. instructions to an agent such as a stockbroking firm)

must be in writing if it involves a contact for the sale of land (Victoria)



trust

property held in the name of another person

usually governed by a document known as a trust deed

the obligations of the trustee are to keep the assets safe (e.g. in conservative investment forms such as bank accounts), a trustee is not permitted to use money held on trust for personal use, to spend it, or to give it away

very widely used in investment management, wills, commercial situations etc.



