Most people think that a contract is a formal written document which has been signed by the parties in the presence of independent witnesses. If all contracts took this form, there will be little room for argument about whether the parties had entered into a legally binding agreement, the obligations, they had undertaken or the consequences of failing to carry out the terms of the agreement. In practice, few contracts are entered into without formalities. The parties may even be unaware of the legal significance of their actions. Complete the task 1 below: