Contracts Classification

Classification Basis
•According to enforceability
a) Valid contract
b) Void Contract
c) Voidable Contract
d) Unenforceable contract
e) Illegal Agreement
 Valid contract

A valid contract is enforceable by Law.

It becomes valid when it fulfills all its essentials.

Void contract (lacking any legal or binding
force)
• A contract which ceases to be enforceable by law is a void contract.

• This means that a void contract is not void from the beginning.

• It was a valid contract, but due to some reason it became void.

• Example
• A agrees to sell his house to B in 5 days. The house is burnt on the
3rd day.
• Depending upon an event… admission in university and admission
fee.
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.

• A gives money to B for the business of smuggled goods and share

profits.
 Classification Basis

•According to formation

a) Express contract
b) Implied contract
c) Quasi contract
Express and Implied Contracts
• Express Contract
• A contract in which the terms of the agreement are fully and explicitly stated
orally or in writing.
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.

• A found gold of B, It is B’s responsibility to return the gold.

• B leaves the goods at A’s house by mistake. A use the goods, A is bound to
give B the payment of goods/Usage.
 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.
Unilateral and Bilateral Contracts
Every contract involves at least two parties
• the offeror/ promisor, who makes the offer/promise to perform, and
• the offeree/promisee, to whom the offer/promise is made.
Unilateral and Bilateral Contracts
•Bilateral Contract
•a promise is given in exchange for a
promise in return.
•For example: X promises to deliver a car
to Y, and Y promises to pay X an agreed
price.
Unilateral and Bilateral Contracts
•Unilateral Contract
• a promise is exchanged only for the offeree’s
performance.
• For example: A promise to pay 1000 to anyone who
finds his bag.