INDIAN CONTRACT ACT,

1872
KINDS OF CONTRACT
 LEARNING OUTCOME
• Categorizing and Illustrating the various types of
contract.
 KINDS OF CONTRACT

Illegal Contracts E-Commerce

Contracts
 KINDS OF CONTRACT

Enforceability Formation Performance

Valid Contracts Unilateral Contracts

Express Contracts

Void Contracts
Bilateral Contracts
Voidable Contracts Implied Contracts
Executed Contracts
Unenforceable
Contracts
Quasi Contracts
Illegal Contracts Executory Contracts
 KINDS OF CONTRACT

1.Point of view of enforceability(validity)

2.Point of view of mode of creation(formation)

3.Point of view of extent of execution(performance)

1. Point of view of enforceability

(a) Valid contract:- enforceable by law

(b) Voidable contract:- enforceable by law at option of one of

the parties
(A, threatens to shoot B if he does not sell his new
Bajaj bike to A for Rs. 2000, B agrees. The contract has been
brought about by coercion and is voidable at the option of B.)

(c) Void contract:- which ceases to be enforceable by law, not

binding in law
 Poll/Quiz
All void contracts are illegal?
a)Yes
b)No
(d) Unenforceable contract:- is valid in itself but not capable of
being enforced in court of law because of some technical
defect such as absence of writing.
e) Illegal or unlawful contract:- if either the consideration given for the
contract is illegal or the object of the contract is illegal. For example:

(1) Tom promises to give Jerry five grams of cocaine if Jerry promises
to drive Tom to Manhattan on Saturday. This is an illegal contract
because the consideration given for the contract is illegal.
(2) Tom promises to give Jerry $5,000 if Jerry robs a bank on
Saturday. This is an illegal contract because the object of the contract is
illegal.
2. Point of view of mode of creation (formation)

a) Express contract:- offer and acceptance both are made in words

spoken or written.
[ A tells B on telephone that he offers to sell his car for Rs. 80000
and B in reply informs A that he accepts the offer]
[Mr. A, a student, called Mr B on the phone and agrred to buy his
text books of last semester for Rs.300]
 Cont..
b) Implied contract:- offer and acceptance by acts and conduct of the
parties.
[A, a coolie in uniform takes up luggage of B to be carried out of
railway station without being asked by B, and B allows him to do so, law
implies that B agrees to pay for the services of A]

[If A boards a bus for going to his destination and whether he takes a
seat or not, the law will imply a contract from the very nature of the
circumstances, and A have to pay the fare]
c) Constructive or quasi contract:- A quasi contact is based
on the principle that a person shall not be allowed to enrich
himself at the expense of another. These contracts are
strictly not contracts as there is no intension of parties to
enter into a contract.
 Cont..
• [A, came into contract with B, to deliver some product to B
but by mistake he delivers the same product to C, now the
contract formed between A and C in quasi contract]
• ABC ltd., a TV co., delivered a new TV to Mrs. Z that she did
not order. She kept the TV and did not attempt to return it. In
this case, a Quasi-contract may be enforced on her to pay for
the TV
D) E-Commerce contracts
A contract modelled, specified, executed and deployed by a software
system.
Very similar to traditional contracts
Formation of E-Commerce contracts
•Click-Wrap
•Browse-Wrap
•Shink-Wrap
3. Point of view of extent of execution

a.Executed contract:- parties of contract completely performed their share

of obligation.

[J Inc, agreed to buy 10 tons of coal from the Northern Coal Co.
The Co. delivered the coal to J’s steel mill, where it was being burned. At
that point, the contract was executed on the part of Northern and executed
on J’s part. After J Inc. paid the company price for the coal supplied, the
contract would be executed on both sides.]
 Cont..
b. Executory contract:- obligations are outstanding. They can be
Unilateral and Bilateral.
[ T agrees to coach R, a medical student, from first day of
next month and R agrees to pay a consideration of Rs. 3000p.m.,
the contract is executory because it is yet to be carried out.]
 Quiz/Poll
In an executed contract, both parties have
yet to fulfil their obligations.
a)Yes
b)No
 Comment……

“ All the contracts are

agreements
but
all the agreements are not
necessarily contracts.”
 MCQ
• Where undue influence has been used to form
the contract, the effect is that the contract is:
a) Void
b) A valid contract that binds both parties
c) Illegal
d) Voidable
 MCQ
• A contract where both the parties have fulfilled
their obligations is called as…..
a) Valid
b) Executed
c) Void
d) Unilateral
 MCQ
• ………….. Contract is made by spoken words
a) Implied
b) Express
c) Void
d) Special
 MCQ
• Where the contract is understood by conduct of
parties it is…….. Contract
a) Implied
b) Express
c) Void
d) Special
 MCQ
• Void agreements signifies:
1. Agreement illegal in nature
2. Agreement not enforceable at law
3. Agreement violating legal procedure
4. Agreement against public policy