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    Classification of Contract

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    Amrita Patil
    There are several types of contracts based on enforceability, mode of creation, and extent of execution. Valid contracts are legally binding, while voidable contracts can be cancelled by the aggrieved party. Void contracts have no legal effect, and illegal contracts violate law or public policy. Implied contracts involve implied acceptance through actions, while quasi/constructive contracts do not involve agreement but are recognized by law. Executed contracts involve complete performance by both parties, while executory contracts involve outstanding obligations by one or both parties.

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    Classification of Contract

    Uploaded by

    Amrita Patil
    40 views3 pages
    There are several types of contracts based on enforceability, mode of creation, and extent of execution. Valid contracts are legally binding, while voidable contracts can be cancelled by the aggrieved party. Void contracts have no legal effect, and illegal contracts violate law or public policy. Implied contracts involve implied acceptance through actions, while quasi/constructive contracts do not involve agreement but are recognized by law. Executed contracts involve complete performance by both parties, while executory contracts involve outstanding obligations by one or both parties.

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    CLASSIFICATION OF CONTRACT

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    There are several types of contracts based on enforceability, mode of creation, and extent of execution. Valid contracts are legally binding, while voidable contracts can be cancelled by the aggrieved party. Void contracts have no legal effect, and illegal contracts violate law or public policy. Implied contracts involve implied acceptance through actions, while quasi/constructive contracts do not involve agreement but are recognized by law. Executed contracts involve complete performance by both parties, while executory contracts involve outstanding obligations by one or both parties.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    40 views3 pages

    Classification of Contract

    Uploaded by

    Amrita Patil
    There are several types of contracts based on enforceability, mode of creation, and extent of execution. Valid contracts are legally binding, while voidable contracts can be cancelled by the aggrieved party. Void contracts have no legal effect, and illegal contracts violate law or public policy. Implied contracts involve implied acceptance through actions, while quasi/constructive contracts do not involve agreement but are recognized by law. Executed contracts involve complete performance by both parties, while executory contracts involve outstanding obligations by one or both parties.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Types/Classification of Contract

    Based on Enforceability
    Valid Contract -The Valid Contract is an agreement which is legally binding and enforceable. An invalid
    contract may lead to obstruction of businesses and unlawful insincere dealings. The Indian Contract
    Act, 1872, lists the essentials of a Contract either directly or by interpretation through various
    judgments. A contract must qualify all the essentials of a contract.
    Voidable Contract- The voidable contract, in Section 2(i) of the Act, is defined as “an agreement which
    is enforceable by law at the option of one or more of the parties to it, but not at the option of the
    others, is a voidable contract”. A Contract becomes voidable when the consent of either party is
    obtained under coercion, fraud, misrepresentation, undue influence. Such contract becomes voidable
    at the option of the aggrieved party(innocent party/party who is not at a fault). But the aggrieved
    party must exercise the option of cancelling the contract.
    Void Contract- Act defines a void contract as “a contract which ceases to be enforceable by law
    becomes void when it ceases to be enforceable”. Such contract is not binding in law. Void means
    useless contract which has no legal effect at all. Such a contract is as good as there has been no
    contract at all i.e Null. In certain cases the contract is not void since inception but subsequently it
    becomes void due to circumstances and certain reasons.
    Illegal Contract- An agreement which leads to one or more parties to break the law or public policy or
    societal morality is deemed to be illegal by the court. Illegal contracts are considered as void and not
    enforceable by law. Illegal contracts are void ab initio (from the start or the beginning), and they are
    punishable under the law because of the criminal aspects of the illegal contracts.
    Unenforceable Contract- Unenforceable contracts are extracted unenforceable by law due to some
    technical aspects and cannot be enforced against any of the parties. Eg: An oral gift deed is
    unenforceable because the law requires the gift deed to be written and registered.
    Types/Classification of Contract

    Based on Mode of Creation of Contract


    • Express Contract- When both offer and acceptance are enforceable by law are made in words
    spoken or written, it is an express contract. A tells B on telephone that he offers to sell his car for
    Rs 1lakh and B accepts his offer there is an express contract.

    • Implied Contract- When offer and acceptance are made other than in words i.e. by acts or
    conduct of party, then it is an implied contract.

    • Quasi/ Constructive Contract- Such a contract does not arise by virtue of any agreement ,
    express or implied between the parties but the law infers or recognizes a contract under certain
    special circumstances. Eg: The obligation of finder of the lost goods to return them to the rightful
    owner or liability of a person to whom money is paid by mistake to repay it cannot be said to
    arise out of a contract even in its remotest sense, as there is neither offer and acceptance nor
    consent , but these are covered under quasi contract.
    Types/Classification of Contract

    On the basis of extent of execution


    Executed Contract – A contract is said to be executed when both the parties to a contract
    have completely performed their share of obligation and nothing remains to be
    pending either by any party under the contract.

    Executory Contract – It is one in which both the obligations are outstanding, one on either
    party to the contract, either wholly or in part, at a time of the formation of the
    contract. A contract is said to be executory when either both the parties to a contract
    have still to perform their share of obligation in toto or there remains something to be
    done under the contract on both the sides.

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