Before dealing with the various essentials of a valid contract one by one in detail, iut will be appropriate

to discuss the ‘kinds of contracts’, first, because we shall be using the terms like voidable contract, void
contract, void agreement, etc. very often in the course of our discussion.

WQhena contract is created in words spoken or written, it is an express contract. When a contract is
entred into by parties not by words but by action or conduct of the parties, it is an implied contract.

When a contract is entered ino by parties not by words but by action or conduct of the parties, it is an
implied contract.

Such a contract does not arise by virtue of any agreement, express or implied betwwn the parties but
the law infers or recognizes contract under certain special circumstances.

The term enforceability means right of one part to the contract to approach court of law in case when
the other party does not fulfill its promise given under the contract.

A valid contract is agreement enforceable by law. An agreement becomes enforceable by law when all
the essential elements of a valid contract are present.

An agreement, which is enforceable by law at the option of one or more of the parties thereto is a
voidable contract.

Such a contract is voidable at the option of the aggrieved part i.e. the party whose consent is cause. But
the aggrieved party must exercise his option of rejecting the contract within a reasonable time, and
otherwise the contract cannot be repudiated and it will raise the presumption that the contract is valid.

If the party rescinding voidable contract has received any benefit from another party to such contract,
he must restore such benefit, so far as may be, to the person from whom it was received.

Literally the word void means not binding in law.

The one of the essential of a vail contract is tat it must not be one which is expressly declares to be void
by the Act. Thus, there arises a question as to what are expressly declared void agreements

Every individual enjoys the freedom to marry and thus, every agreement in restraint of the marriage of
any person is void.

The Constitution of India guarantees the freedom of trade and commerce to every citizen and therefore,
every agreemtn by ehich any one is restrained from exercising a lawful profession, trade or business of
any kind, is void to that extent.

An agreement whereby one of the parties agrees to close his business in consideration of the promise to
the other party to pay a certain sum of money is void, being an agreement in restraint of trade, marriage
amount is not recoverable, if the other part fails to pay the promised sum of money.
But agreements merely restraining freedon of action necessary for the carrying on of businedd are not
ovid, for the law does not intend to take away the rifht of a trader to regulate his business according to
his own discretion and achoice.

The seller of the goodwill of a business can be restrained from carrying in a similar business wihin
specified local limits so long as the buyer or any person deriving title to the goodwill from him, carries on
a like business, provided such restriction is reasonable.

An agreement in restrain of trade among the partners or between any partner and the buyer of firms
goodwill is valid if the restraint comes within any of the following

An agreement in the nature of a business combination betwwn trademarks or manufactures is not void
under following cases:

An agreement of service by which a personbinds himself during the term of the agreement, not to take
service with anyone else is not in restraint of lawful profession and is valid.

An agreement by which a aprty is restricted absolutely from taking usual legal proceedings, in respect of
any rights arising from a contract, is void Similarly an agreement which limits the time within which one
may enforce his contractual rights, is void

Agreements, the meaning of which is not certain or capable of being made certain are void. Thus, if the
words used by the parties are vague or indefinite the law cannot enforce the agreement.

Literally the word wager means a bet something stated to be lost or won on the result of a doubtful isse
and therefore wagering agreements are nothing bu ordinary betting agreements. Agreement by way of
wager are void and no suit shall be brought for recovering anything alleged to be won on any wager.

Firestly, contigents Contracts are those which are based on the happening of a future veent. Please
understand there is no betting between the parties here, rather both the parties want and positively
believes that the cent will occure and thus it is a valid contract.

Contigent agreements are agreement to do or no to do anything if an impossible event happens are void
agreemens.

The term coid contract implies a contract that has no legal effect at all.

A contract which ceases to be enforceable by law becomes void. It follows from the definition of a void
contract is valid and binding on the parties when originally entered but seubsequently formation it
vecims invalid because of certain reasins as given in the Contract Act.

A contract becomes void by impossibility of performance agter the formation of the contract

A contract also becomes void by subsequent illegality.

A voidable contract becomes void, when the party, whose consent is not free, repudiates the contract.

A contigent contract to do or not to do something on the happening of an uncertain event becomes

void.

An agreement not enforceable by law is said to be void. The similarity between void contracts and void
agreements is that both do not give rise to any legal consequenes The difference between void
contracts and void agreements are no agreement at all from its very beginning whereas boid contracts
are not void