BYVIKASH KUMAR BASANT(25)

Indian contract act 1872 is the main source of law

regulating contracts in Indian law. Citation- act no. 09 to 1872 Enacted by parliament of India Date - enacted 25th April 1872 Date - commenced 1st September 1872

 Agreement = offer + acceptance Agreement Every promise and every set of promises forming consideration for each other.(sec-2e) Contract Agreement + Enforceability at

law
Contract- A contract is an agreement made

between two or more parties which the law will enforce. (sec-2h) An agreement creating and defining obligations between the parties. By- Salmond Every agreement and promise enforceable at law is a contract. By Pollocks

 1. CLASSIFICATION ACCORDING TO VALIDITY

2. CLASSIFICATION ACCORDING TO

FORMATION 3. CLASSIFICATION ACCORDING TO PERFORMANCE.

 1.VALID CONTRACT- A contract is based on an

agreement . An agreement between a contract when all the essential elements referred to above are present. In such a case , the contract is a valid contract

 2..EXAMPLE-A promises to sell his car to B for 50,000.

His consent is obtained by the use of force. The contract is voidable at the option of A. He may avoid the contract or elect to be bound by it. VOIDABLE CONTRACT: An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract(sec.2i) . This happens when the essential elements of free consent in a contract is missing. When the consent of a party is not free, i.e., it is caused by coercion, undue influence, misrepresentation or fraud, the contract is voidable.

 3.VOID COTRACT- A contract which ceases to be

enforceable by law becomes a void contract.

EXAMPLE- A contract to import goods from a foreign

country . It may subsequently become void, when a war breaks out between the importing country and exporting country.

4 - Illegal contract- an illegal agreement is one which transgresses some rule of basic public policy or which is criminal in nature or which is immoral E.g. A takes loan from bank for the purpose of buying drug. If bank gets aware it will be a illegal contract

5 - Unenforceable contract an unenforceable contract is one which cant be enforced in a court of law because of some technical defect such as absence of writing or where the remedy has been barred by lapse of time.

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1. Express contract: Where the terms of the contract

are expressly agreed upon in words (written or spoken) at the time of formation, the contract is said to be express contract.

2..Examples; a. Gets into a public bus. or b. takes a cup of tea in a restaurant, c. obtains a ticket from an automatic weighing machine
Implied contract: An implied contract is one which

is inferred from the acts or conduct of the parties or from the circumstances of the cases. Where a proposal or acceptance is made otherwise than in words, promise is said to be implied

 3.. Example; T is a tradesman , leaves goods at Cs

house by mistake. C treats the goods as his own. C is bound to pay for the goods.
Quasi contract: A quasi contract is created by law.

Thus, quasi contracts are strictly not contracts as there is no intention of parties to enter into a contract. It is legal obligation which is imposed on a party who is required to perform it. A quasi contract is based on the principle that a person shall not be allowed to enrich himself at the expense of another.

 4.E-commerce contract An E-commerce contract

is one which is entered into between two parties via internet. In internet , different individuals or companies creates networks which are linked to numerous other networks. This expands the area of operation in commercial transactions for any person.

 1. Executed contract 2. Executory contract 3. Unilateral contract 4. Bilateral contract

 1..Example; A agrees to paint a pictures for B for Rs 100.

When A paints the pictures and B pays the price, i.e., when both the parties performs their obligations, the contract is said to be executed.
Executed contract : Executed means that which is

done. An executed contract is one in which both the parties have performed their respective obligation

 2.Example; If A has not yet painted the picture and B

has not paid the price . Similarly , if A agrees to engage B as his servant from the next month. A contract may sometimes be partly executed and partly executory. Thus if B has paid the price to A and A has not yet painted the picture , the contract is executed as to B and executory as to A. Executory contract: An executory contract is one where one or both the parties to the contract have still to perform their obligations in future. Thus, a contract which is partially performed or wholly unperformed is termed as executory contract.

 3. Unilateral contract: A unilateral contract is one in

which only one party has to perform his obligation at the time of the formation of the contract, the other party having fulfilled his obligation at the time of the contract or before the contract comes into existence. A permits a railway coolie to carry his luggage and place it in a carriage, A contract comes into existence as soon as the luggage is placed in the carriage . But by that time the coolie has already performed his obligation. Now only A has to fulfil his obligation , i.e., pay the reasonable charge to the coolie.

 4. Bilateral contract: A bilateral contract is one in

which the obligation on both the parties to the contract is outstanding at the time of the formation of the contract. Bilateral contracts are also known as contracts with executory consideration.