What are the Different Types of Contract? | Indian Contract Act, 1872 | The National TV

https://f002.backblazeb2.com/b2api/v1/b2_download_file_by_id?fileId=4_za8a2358db1d7f91b68b30916_f119e3373149c520c_d20200522_m061415_c002_v0001139_t0050

Introduction

The contract has been defined under Sec 2(h) of the Indian Contract Act, 1872 as an agreement that is enforceable by law. The contract is basically categorized on the basis of validity, formation, and performance.

 

 

Contract on the basis of validity -

1. Valid Contract Valid contract is simply explained as those agreements which can be enforceable by law. Basically it fulfills the basic requirements or elements of the contract.

 

2. Void Contract Void Contract is those Contract which isn't enforceable in the court of law and hasn't fulfilled the elements of a contract. Mohori Bibee v. Dharmodas Ghose It was held that minor is not competent to contract therefore the contract with minor is void and he won't be liable to perform his duty mentioned in the Contract.

 

3. Voidable Contract It means when the party to the contract has the choice to declare the void in the court of law. It happens when the consent of the parties isn't free and caused by coercion, undue influence, fraud, misrepresentation, and mistake. Chikham Amiraju v. Chikham Seshamma In this case the consent was taken by the threat of suicide for properties. It was held that the threat of suicide amounts to coercion and therefore, the consent of the parties isn't free, and hence it is a voidable contract.

 

4. Illegal Contract Illegal Contracts are those contracts that are forbidden by the law and the parties are not allowed to form the Contract over such matters. Eg - Contract for the sale of narcotics.

 

5. Unenforceable Contract It is the contact whose substance is good and valid but due to some technical defect or any other issue they can't be enforced and damages can't be claimed. Eg - If A agreed to buy 20 kgs of wheat for 80,000 then this Unenforceable contract.

 

 

Contract on the basis of formation -

1. Express Contract This type of contract is expressed clearly in written or oral.

 

2. Implied Contract Implied contracts are constituted by the implication of law or action. Eg - Relationship between Doctor and patient.

 

 

Contract on the basis of performance -

1. Executed Contract When the performance of the contract has been done or performed then it is considered as an executed contract.

 

2. Executory Contract When the performance is yet to be performed and the parties are still obligated in the contract. It is further subdivided as Unilateral Contract and Bilateral Contract Unilateral Contract is created by an offer that can be performed by acceptance. Eg - Insurance Party contract Bilateral Contract is the contract where the consideration is binding upon both the parties after an exchange of promise.

 

 

 

 

Read More Latest Bollywood Movie Reviews & News

Read More Sports News, Cricket News

Read More Wonderful Articles on Life, Health and more

Read More Latest Mobile, Laptop News & Review

Leave a Reply