Contracts and its

classification
By Vlasiev Constantin. 102
 Content

What is Contract (slide 3)

Notion of Free contract (slide 4) Unilateral Contracts (slide 8)

Form of Contracts (slide 5) Essential elements of a Contract
2 classes of Contract (slide 6) (slide 9)

Bilateral Contracts (slide 7) Enforceability (slide 11)

2
 What is a Contract?

A legally binding agreement

In other words…“A promise or set of promises which the law will enforce”. The
agreement will create rights and obligations that may be enforced in the courts.
The normal method of enforcement is an action for damages for breach of
contract.

3
 Notion of Free Contract

The parties must have entered into

the agreement freely. The purpose
of the agreement must not be illegal
or contrary to public policy.

4
 Form of Contracts

Partly oral and

Written
written

Oral

5
 2 classes of Contract

A deed is a formal legal document signed,

Contracts by witnessed and delivered to effect a
Deed conveyance or transfer of property or to
create a legal obligation.

Simple contracts are informal contracts

Simple
and may be made in any way – in writing
contracts or orally

6
 Bilateral Contracts
A promise by one party in exchanged for a promise by another party.
A one to one contract. 

Offeror Offeree
The person who make The person to whom the
the offer contract was made

Example : Sale of goods contract. The Buyer promises to pay the

price. The Seller promises to deliver the goods.
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 Unilateral contracts
A promise by one party in exchanged for an action by another party.
A one to all contract
1 Offeror Many Offerees

Example: X promises a reward to anyone who will find his lost wallet.
X bound himself to the promise, but no one is bound to search for
the lost wallet. But if Y, having seen the offer, recovers the wallet and
returns it, he is entitled to the reward.
8
 Essential elements of a Contract

Intention to create legal

Agreement relations
One party make the The parties must have
offer, another party intended their
accepts the offer and agreement to have legal
both achieve consensus consequences. The law
ad idem (meeting of the will not concern itself
minds) with purely domestic or
social agreements.
Consideration
Both parties must have
provided consideration,
each side must promise
to give or do something
for the other.

9
 Essential elements of a Contract

Capacity Absence of Vitiating factors

Absence of factors that are going

The parties must be
to invalidate a contract: duress
legally capable of
or undue influence, mistake,
entering into a contract.
misrepresentation, illegality

10
 Enforceability

Void contracts

the whole transaction is regarded as a nullity, as though as there has

been no contract between the parties.

Any goods or money obtained under the agreement must be returned.

Where items have been resold to a 3rd party, they may be recovered
by the original owner.

11
 Enforceability

Voidable contracts

A voidable contract will operates as a valid contract unless and until one
of the parties takes steps to avoid it.

Anything obtained under the contract must be returned, insofar as this is

possible.

If goods have been resold before the contract was avoided, the original
owner will not be able to reclaim them.

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Thank you for
listening!
Vlasiev 

| Constantin