B.law Lecture 4 Classification of Contracts 1
B.law Lecture 4 Classification of Contracts 1
B.law Lecture 4 Classification of Contracts 1
Classification
Basis
According to
enforceability
a)Valid contract
b)Void Contract
c)Voidable Contract
d)Unenforceable contract
e)Illegal Agreement
Valid contract
Voidable contract
If a contract is enforceable by law at the option of one
party but not on the other party.
A sells his car to B under undue influence, now B has
the option to void the contract or not.
A painter agrees to paint the house of a person A, the
person A prevents the painter to paint, the contract is
voidable at the option of the painter.
Unenforceable contract
A contract which is not enforceable through the court
due to some technical fault.
A deal required to be written on the 100 rupee stamp
paper, but it was done on 10 rupee stamp paper.
Illegal agreement
An agreement that has been forbidden by law cannot
become a contract.
Classification Basis
According to formation
a)Express contract
b)Implied contract
c)Quasi contract
Implied Contracts
Implied Contract
A contract formed in whole or in part by the conduct (as
opposed to the words) of the parties.
A went to a restaurant and had a cup of tea. It an implied
contract that A has to pay for the cup of tea.
Quasi-Contract
Quasi-Contract (Implied in Law)
A fictional contract imposed on parties by a court in the
interests of fairness and justice, typically to prevent the unjust
enrichment of one party at the expense of the other.
Classification Basis
According to
performance
a)Executed contract
b)Executory contract
According to parties
a)Unilateral contract
b)Bilateral contract
Status of Contracts
Executory Contracts
Not yet performed by all parties
Executed Contracts
Fully performed by all parties.
Bilateral Contract
Unilateral Contract
a promise is exchanged only for the offerees
performance.
For example: A promise to pay 1000 to
anyone who finds his bag.