In our life in many movements and whenever we move

through other persons we enter contract by expressly or impliedly. But the noticeable thing is
many times we did not think about it. Because it is continues habit from our ascendants .In
Sri Lanka our all personal and foreign laws indicate the usage of contracts1. Sir William
Anson defines the contract “A Contract is a legally binding agreement made between two or
more parties with the intention of creating binding relationship”2

When we commence to classify the contracts many type of

classifications available in the world. Every legal systems and different policies writers have
different type of classifications. When C.G.weeramantry, expressed different types of
contracts3 of his book4. He listed some kind of factors regarding classification of contracts
under different types of legal systems such as Roman law, Roman Dutch law and English
law.Classification in Law of Contracts divided in two categories largely. First is General
Contracts and the second one is Special contracts, mostly it has business type5 contracts

Contracts by deed and Simple contracts the contract of an

ancient origin and derives its validity from the form in which it is made. It must be in writing
and must be singed, witnessed and delivered .promises made by deed do not need
consideration6. These types of contracts usually enforceable before a court of law unless the
1
In our personal laws kandyan Law, Thesawalamai law and Muslim Law contain different types of
contractual elements. According to Haley , kandyan law connect with Sale of goods, exchange of
goods and mortgage of lands such types of contracts may be in oral or writing but when the value of
such contract was higher the parties like to make a written contact . In Thesawalamai law and
Muslim law had not any specific type of contracts like kandyan law . But in Sales, leasing and some
types of transfers included in our customary laws. And our all stranger law systems also give
different type of contractual elements.

Anson – law of contract

2

1.Actionable and Non-actionable Contracts

3

2. Unilateral and Bilateral Contracts

3.Unifactoral and Bifactoral Obligations
4.Divisible and indivisible Contracts
5.Principal and Accessory Contracts
6.Contracts Ad Dandum and Ad Faciendum
7.Specific and General Contracts
8.Illegal , Void, Voidable and unenforceable contracts
9.Formal and informal or Simple contracts
10.Notarilly Attested Contracts and Informal or Parol Contracts
11.Joint, Several , and joint and several Contracts
12.Express and implied Contracts
13.Executed and Executory Contracts
14.Liquidated and Unliquidated obligations

4
The law of contracts , volume-I by C.G.weeramantry
5
Contract of Indemnity, Contract of Guarantee, Bailment’s, Agency, Sale of goods, Partnership,
Companies, Insurance, Negotiable Instruments, The law of Insolvency or bankruptcy
6
An essential element for create a legally valuable contract under Common law tradition
contract parties place a clause define as “No chance to forward any breach of this contract to
a court of law”. In our all property matters we depend these types of contracts such deed of
gift, leasing or loan documents, dowry deeds and partnership white colour jobs. All other
contracts may be classified as simple contracts. Whether they be made in writing, orally or by
conduct. The law of simple contracts plays significant part in law of contract.

Another type of classifying of contracts is according to whether they are “Bilateral” or

“Unilateral” under Roman Dutch law tradition.

Unilateral contracts Here one party promises to do

something in return for an act of the offer party, as opposed to a promise7 , A celebrated case
“Carlill V Smoke Ball Company”8 the elements of this contract deeply explained. And a Sri
Lankan case Maurice Roche Ltd. V Port (Cargo) Corporation9

Bilateral contracts, here a promise by one party is

10
exchanged for a promise by the other . The exchange of promises is enough to render from
both enforceable; thus in a contract for the sale of goods. The buyer promise to pay the
money and seller promise to sell the goods, if we made a contract within our relations and
friends that include in this type of contract. This type of contracts processed in many different
ways, I try to analyze those headings shortly below.

01. Aleatory Contracts

A mutual agreement which comes into effect only in case of an occurrence of an uncertain
event or a natural calamity11 For example, a fire insurance12 policy or a travel insurance is a
type of aleatory contract as the policy holder will not receive any benefits of the contract
unless in an event of fire occurrence or a plane crash
7
e.g. where A promises a sum of reward to anyone who will find his lost pen . here A make a contract and
binding of it but it is one party contract only. If B find such pen and bring to A then B also a party of contract
otherwise B has not any responsibility regarding A’s contract.
8
Carlill v Carbolic Smoke Ball Company [1893] 1 QB 256; Court of Appeal, 1892 Dec. 6,7, LINDLEY,
BOWEN and A. L. SMITH, L.JJ. Here Defendant is a medical product company and Plaintiff is a
patient affected by influenza, The Company advertised who use their product (Carbolic smoke balls)
in prescribed manner in prescribed time. After the usage of smoke balls, when the influenza did not
cure they will give £ 100.They deposit £1000 in their bank to show their credibility. Plaintiff knows the
news and used the smoke balls in prescribed manner in prescribed time. But she could not cure such
influenza, so she claimed the reward. But the company refuses to give reward. So the dispute went to
courts court held the company should pay the reward.

9
(1967) 71 N.L.R 195 at 199 , In this case court held a cargo company always made an
agreement with the ship when they arrived to harbor so it is a unilateral type of contract.

10
Ruling Court Case. Howe Vs. O'Mally, Volume 1 Murphy's North Carolina Reports, Page 287;
Volume 3 American Decisions, Page 693

11
 Batsakis v. Demotsis, 226 S.W.2d 673 (Tex. Civ. App. 1949)
12
A large ship called missed in Bermuda Triangle, So the insurance company pay the full value of
the ship according to Aleotary type contracts.
02. Unconscionable Contracts
Unconscionable contracts are those that are unfair and unduly one-way favors of the party
who stand at a superior end of the bargaining power13. No mentally healthy and honest person
would ever accept an unconscionable contract and enter into it. The court of law have found
that unconscionable contracts are a result of exploitation of illiterate and impoverished
consumers.

03. Adhesion Contracts

Adhesion contracts are the ones that are drafted by a party who has a larger advantage in
bargaining. This often happens in monopolistic markets14. However, courts of law, refuse to
implement such contracts of adhesion on the grounds that there was no mutual understanding
or an acceptance between the two parties involved in an adhesive contract. 

Other type of contracts are listed and described below.

Express Contracts and Implied Contracts, express contract, the parties to the contract state
the terms and conditions either by word of mouth or in writing, at the time of forming the
contract15. Contracts implied in fact and contracts implied in law are both a part of implied
contracts16. The term "Quasi Contract", is however, a more specific identification of
contracts implied in law.

Void and Voidable Contracts17, A void contract implies that the parties are not legally
bound with reference to that contract. In fact, a void contract18 means a contract has ceased to
exist. A voidable contract, on the other hand, is an agreement between any two or more
parties, which has a legal binding19.

Executed Contracts and Executrix contract ,An executed contract is termed as an

agreement in which no other transaction is left out to be executed by either party20, Executrix
contract is going to fulfill or completed on a future date21.

13
Waters v. Min Ltd.,Supreme Judicial Court of Massachusetts, 1992, 412 Mass. 64, 587 N.E.2d
231

14
Aral v. Earthlink, Inc., 134 Cal. App. 4th 544 (2005).
Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 (1991)
15
Cutter v Powell (1795) 6 TR 320ss
16
Grosso v. Miramax 
17
Cundy v Lindsay (1878) 3 App Cas 459,
  Bell v Lever Bros Ltd [1932] AC 161, [1931] All ER Rep 1
18
It concern in illegality of contracts such time the court of law has not enforceable law.
19
A voidable contract can be treated as never been legally bound on a party that has been a
victim of fraudulent execution.
20
SYLVAN CREST SAND & GRAVEL CO. V. UNITED STATES (1859)
21
HERTZOG V. HERTZOG (1857)
 Until we see what are the types of contracts available in our
life. Every one of us must go through a contract in our day to day life activities22 knowingly
or unknowingly. So we try to understand the differential elements of contracts and make
better performance with our suitable circumstances .So Contracts are inevitable in our life in
commercial basement and relationship too.

References

01.Anson’s law of Contract

02.Nutshell Law of Contract

03. http://en.wikipedia.org/wiki/Contract#Elements ,Accessed on 30th March, 2011 at 05.25 P.M

04. http://www.buzzle.com/articles/contracts/, Accessed on 28th march, 2011 at 10.55 P.M

05. The law of contracts by C.G.Weerematry

(Total words 804 )

22
In our food, education, shelter, profession, entertainment all things are covered by contracts.