Introduction-: 1. Express Contract

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Introduction-

 A contract means an agreement that is enforceable by law. An agreement consists of reciprocal


promises between two parties. All agreements are not enforceable by law and therefore all
agreements are not contracts. Some agreements may be enforceable by law and others are not.
For example- in agreement to sell a radio set maybe a contract but an agreement to go to see a
movie maybe the main agreement not enforceable by law. All agreements are not contracts and
only those agreements are contracts that fulfill with satisfying conditions mentioned in section
10 become contract. All contracts are agreement.

Types of Contract – Based on Formation


While getting into a contract various aspects are to be taken into consideration. Like if the contract
has to be in written form, it must be an Express Contract. Similar to the express contract, we have
four other types of contracts based on the formation of the contract.

1. Express Contract
A contract is said to be an express contract, if the terms of a contract are expressly agreed upon
between the parties (either by words spoken or written) at the time of formation of the contract.
An express promise results in express contract. A promise is said to be an express promise, when
the offer or acceptance of any promise is made in words. For example: A says to B will you
buy my scooter for Rs. 13000? B says to A “Yes, I am ready to buy it’. This is an express
contract

2. Implied Contract
An implied contract is one for which the proposal or acceptance is made otherwise than in
words. Where the proposal or acceptance of any promise is made otherwise than in words, the
promise is known as implied promise. For example: Sitting in a bus can be taken as an example
of the implied contract between the passenger and owner of the bus.

3. Quasi – Contract
A quasi-contract is one, which is created by law. In the quasi-contract, there is no intention on
either side to make a contract. In a quasi contract, rights and obligations arise not by an
agreement but by operations of law. For example: A and B jointly owe 100 rupees to C. A
alone pay the amount to C and B, not knowing this fact, pays 100 rupees over again to
C. Then, C is bound to repay the amount to B.

Types of Contract based on Performance


Based on performance, Contracts can be classified into two types:
 Executed Contracts
 Executory Contracts –

1. Executed Contracts
It is a contract where both the parties to the contract have fulfilled their respective obligation
under the contract. It means that whatever was the object of the contract has been carried out. In
these contracts mostly, the promises are made and then immediately completed. For example:-
All the transactions of Cash sales are executed contract.

2. Executory Contracts
It is a contract where both the parties to the contract have still to perform their respective
obligations. In such contracts, the consideration for the promise made is carried out sometime in
the future. For example:-Delivery of wheat bags and payment of Rs.40,000 of the same are to
be made after 20 days. The contract is executory.

Types of Contract based on Enforceability

Under the method of the method of enforceability of the contract may be five kinds

1. Valid Contract
2. Void Agreement
3. Void able Contract
4. Unenforceable Agreement
5. Illegal Agreement

1. Valid Contract: An agreement which satisfied all the essential of a contract and
which is enforceable through the court is called valid contract. Example:  Contract
between X and Y and let us assume that their contract has all those above said features. It
is Valid Contract.
2. Void: A Contract which is not enforceable in a court of law is called Void Contract. If a
Contract is deficient in any one or more of the above features (Except free consent and
legal formalities). It is called Void Contract. Example: There is a Contract between X
and Y where Y is a minor who has no capacity to contract. It is Void Contract.
3. Voidable: A Contract which is deficient in only free consent, is called Voidable
Contract. That means it is a Contract which is made under certain pressure either physical
or mental. At the option of suffering party, a voidable contract may become either Valid
or Void in future. For example: there is a Contract between A and B where B has
forcibly made A involved in the Contract. It is voidable at the option of A.

4. Unenforceable Agreement: An Unenforceable Agreement is one which cannot be


enforcing in a court for its technical and formal defect.
Example: (1) An agreement required by law to register but not resisted.

(2) An agreement with not satisfied stamped.

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