Definition of Contract


 
               A Contract has been defined in section 2(h) as " an agreement enforceable by law." To be enforceable by law, an agreement must possess the essential elements of a valid contract as contained in section 10,29 and 56





Type of Contract


           In connnection with contract, there are four types of classifications. Type of contracts in contract law are as follows;


  1. On the basis of Formation
  2. On the basis of Nature of Consideration
  3. On the basis of Execution and
  4. On the basis of Validity


1. On the basis of Formation


            On the base Contracts can be classified into three groups, namely Express, Implied, Quasi Contracts.


* Express Contracts
             The Contracts where there is expression or conversation are called express contracts.
for example: A has offered to shell his house and B has given acceptance. it is express contract.


* Implied Contracts
              The Contrts where there is no expression are called implied contracts. sitting in a bus can be taken as example to implied contract between passenger and owner of the bus.


* Quasi Contracts
               There will be no offer and acceptance so, actually there will be no contractual relations between the partners .such a contract which is created by virtue of law is called Quasi contract. Sections 68 to 72 of contract act read about the situations where court can create Quasi Contract.



  • Sec. 68: When necessaires are supplied
  • Sec. 69: When expenses of one person are paid by another person
  • Sec. 70: When one party is benefited by the activity of another party
  • Sec. 71: In case of finder of lost tools
  • Sec. 72: When payment is made by mistake or goods are delivered by mistake



2. On the basis of Nature of Consideration


               On the base, contracts are of two types namely Bilateral Contracts and Unilateral Contracts.


* Bilateral Contracts: 
               If considerations in both directions are to be moved after the contract, it is called Bilateral Contracts.


* Unilateral Contracts:
               If considerations are to be moved in one direction only after the contract, it is called Unilateral Contract.




3. On the basis of Execution


               On this base contracts can be classified into two groups namely, Executed and Executory Contracts . If  performance is completed , it is called executed contract, in case where contractual obligations are to be performed in future, it is called Exector Contract.



4. On the basis of Validity


                 On this base Contracts can be classified into 5 groups namely Valid, Void, Voidable, Illegal and Unenforceable Contracts.


* Valid:
            The Contracts which are enforceable in a court of law are called Valied Contracts.


* Void:
            A Contract which is not enforceable in a court of law is called Void Contract.


*Voidable:
             A Contract which is deficient in only free consent, is called Voidable Contract


*Illegal:
            If the contract has unlawful object it is called Illegal Contract.


*Unenforceable:
            A Contract which has not properly fulfilled legal formalities is called Unenforceable Contract.