Contracts on the basis of creation:
a) Express contract:
Express contract is one which is made by
words spoken or written. Example No.
1: X says to Y, will you buy a car
for Rs. 100000? Y says to X, I am ready
to buy you car for Rs. 100000. It is an
express contract made rally. Example
No. 2: X writes a letter to Y, I
offer to sell my car for Rs. 100000 to
you. Y send a letter to Y, I am ready to
buy you car for Rs. 100000. It is an
express contract made in writing.
b) Implied contract:
An implied contract is one which is made
otherwise than by works spoken or
written. It is inferred from the conduct
of a person or the circumstance of the
particular case. Example: X, a
coolie in uniform picks up the bag of Y
to carry it from railway platform to the
------ without being used by Y to do so
and Y allow it. In this case there is an
implied offer by the coolie and an
implied acceptance by the passenger.
Now, there is an implied contract
between the coolie and the passenger is
bound to pay for the services of the
coolie.
c) Quasi or constructive contract: It is a contract in which there is no intention either side
to make a contract, but the law imposes
contract. In such a contract eights and
obligations arise not by any agreement
between the practice but by operation of
law. e.g where certain books are
delivered to a wrong address the
addresses is under an obligation to
either pay for them or return them.
Contracts on the basis of execution:
a) Executed contract:
It is a contract where both the parties
to the contract have fulfilled their
respective obligations under the
contract. Example: X offer to sell his
car to Y for Rs. 1 lakh, Y accepts X
offer. X delivers the car to y and Y
pays Rs. 1 lakh to X. it is an executed
contract.
b) Executory contract:
It is a contract where both the parties
to the contract have still to perform
their respective obligations. Example: X
offers to sell his car to y for Rs. 1
lakh. Y accepts X offer. It the car has
not yet been delivered by X and the
price has not yet been paid by Y, it is
an Executory contract.
c) Partly executed and partly executory
contract: It is a contract where one of the parties to the
contract has fulfilled his obligation
and the other party has still to perform
his obligation. E.g X offers to sell his
car to y for Rs. 1 lakh on a credit of 1
month. Y accepts X offer. X sells the
car to Y. here the contract is executed
as to X and Executory as to Y.
Contracts on the basis of
enforceability:
a) Valid contract:
A contract which satisfies all the
conditions prescribed by law is a valid
contract. E.g. X offers to marry y. y
accepts X offer. This is a valid
contract.
b) Void Contract:
the term void contract is described as
under section 2(j) of I.CA, 1872, A
contract which cases to be enforceable
by law becomes void when it ceases to be
enforceable. In other words, a void
contract is a contract which is valid
when entered into but which subsequently
became void due to impossibility of
performance, change of law or some other
reason. E.g. X offers to marry Y, Y
accepts X offer. Later on Y dies this
contract was valid at the time of its
formation but became void at the death
of Y.
c) Void Agreement:
According to Section 2(g), an agreement
not enforceable by law is said to be
void. Such agreements are void- ab-
initio which means that they are
unenforceable right from the time they
are made. E.g. in agreement with a minor
or a person of unsound mind is void
–ab-initio because a mino or a person of
unsound mind is incompetent to contract.
d) Voidable contract:
According to section 2(i) of the Indian
contract act, 1872, arrangement which is
enforceable by law at the option of one
or more of the parties thereon but not
at the option of the other or other, is
a voidable contract. In other words, A
voidable contract is one which can be
set aside or avoided at the option of
the aggrieved party. Until the contract
is set aside by the aggrieved party, it
remains a valid contract. For e.g. a
contract is treated as voidable at the
option of the party whose consent has
been obtained under influence or fraud
or misinterpretation. E.g. X threatens
to kill Y, if the does not sell his
house for Rs. 1 lakh to X. Y sells his
house to X and receives payment. Here, Y
consent has been obtained by coercion
and hence this contract is void able at
the option of Y the aggrieved party. If
Y decides to avoid the contract he will
have to return Rs. 1 lakh which he had
received from X. If Y does not exercise
his option to repudiate the contract
within a reasonable time and in the
meantime Z purchases that house from X
for 1 lakh in good faith. Y can not
repudiate the contract.
e) Illegal Agreement:
An illegal agreement is one the object
of which is unlawful. Such an agreement
cannot be enforced bylaw. Thus, illegal
agreements are always void – ab- initio
(i.e. void from the very beginning) e.g.
X agrees to y Rs. 1 lakh Y kills Z. Y
kill and claims Rs. 1 lakh. Y cannot
recover from X because the agreement
between X and Y is illegal and also its
object is unlawful.
f) Unenforceable contract: It is contract which is actually valid but cannot be enforced because of
some technical defect (such as not in
writing, under stamped). Such contracts
can be enforced if the technical defect
involved is removed.
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contacts
