Kinds or Classification of Contract
I.
Classification on the basis of creation or formation
1.
Express Contract
2.
Implied Contract
3.
Quasi-Contract
1.
Express Contract: An express contract may be created
orally, i.e. by words spoken or in writing. When one party makes the offer by
words spoken or written and the other party accepts the same, accordingly,
there is an express contract created.
2.
Implied Contract: An implied contract is created by
the conduct or acts of the parties and not by words spoken or in writing
3.
Quasi Contract: Such contracts are not expressly or impliedly by the
party or parties but are created by law on the equitable principle that a
person shall not be allowed to become rich at the expense of the other.
II.
Classification on the basis of validity:
1.
Valid Contract
2.
Void agreement
3.
Void Contract
4.
Voidable Contract
5.
Illegal agreement
6.
Unenforceable agreement
1.
Valid Contract: An agreement enforceable at a court of law is called
valid contract. It must have all the essential elements discussed earlier.
2.
Void agreement: An agreement not enforceable at a court of law is a
void agreement. (sec 2(g))
3.
Void Contract: originally an agreement may have been enforceable when
it was made. But subsequently due to impossibility or illegality, it may become
void. Such an agreement is called a void contract. [Sec 2(i)].
4.
Voidable Contract: An agreement which is enforceable,
by law at the option of one or more of the parties but not at the option of the
other or others, is voidable contract. [Sec 2(i)].
5.
Illegal agreement: An agreement to do an act which is
prohibited by law is called an illegal agreement.
6.
Unenforceable agreement: The term unenforceable contract is
used for those contracts which are perfectly valid but cannot be enforced due
to certain technical effect, such as under stamping.
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