Contract Act And Types Of Contract

An agreement which can be legally enforceable by the law is called as Contract. The definition of contract is given in Section 2 (h) of the Indian Contract Act, 1872. Every contract is agreement, but every agreement isn’t contract. Only those agreements are contract which can be legally enforceable by law.

An agreement involves a proposal or an offer by one person and its acceptance by another person. All agreements will be termed contracts only if certain essentials are present in the agreement. These essentials of a contract are-

  1. Free consent of the parties
  2. Lawful consideration
  3. Object of the agreement must be lawful
  4. Agreement must not be void

Types of Contracts

Contracts are classified into following types-

1. Express Contracts

An express contract is a contract which is made by words which are either spoken or written. An express contract is a one which is made in writing.

2. Implied Contracts

Implied contracts are the ones which are not made in writing and are inferred from the conduct of the parties.

3. Unilateral Contracts

Unilateral contract is often referred to as one-sided contract. In unilateral contract only one party has to perform their promise. One of the most common examples of unilateral contract is reward offered for something being found.

4. Bilateral Contracts

Bilateral contract is opposite of unilateral contract. In bilateral contract, both the parties to the contract need to perform their part of the contract. Bilateral contracts are often referred to as two-sided contracts.

5. Fixed Price Contracts

A fixed price contract is a contract in which the price to be paid to the party is fixed beforehand. Fixed contracts are generally entered into by the contractors.

6. Quasi Contracts

A quasi contract is a contract which does not arise by an agreement, but by operation of law. Quasi contract comes into existence because of the intervention of the courts.

The principle behind the quasi contracts is to avoid any “unjust enrichment”.

7. Executed Contracts

Executed contract is a one in which both the parties have performed their promises under the contract. In executed contracts, the object for which the contract had been entered is completely carried out.

8. Executor Contracts

An executor contract is a contract in which the contract is not complete in itself. In such contracts, one party has completed their part of the contract, while the other one is yet to perform their part.

9. Valid Contracts

A valid contract is a one which consists of all the essential elements which are necessary for the formation of a contract. It is legally enforceable and binding.

10. Void Contracts

A void contract is a contract which is not enforceable at the option of neither of the parties.

11. Voidable Contracts

Voidable contracts are the contracts which are legally enforceable by law at the option of one or more parties, but not at the option of others. In other words, a voidable contract is a one where one party is not in fault and can avoid performing their part of the contract.

12. Illegal Contracts

A contract which is forbidden by law is known as illegal contract. Illegal contracts are opposed to public policy and are immoral.

13. Unenforceable Contracts

An unenforceable contract is a one which contains all essential requirements of a contract, but is not enforceable by law because of some technical issues involved in it.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

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