CLASSIFICATION OF CONTRACTS
Contracts may be classified into different categories depending upon their
enforceability or
validity, mode of creation or formation and extent of execution or
performance.
A. CLASSIFICATION OF CONTRACTS ON THE BASIS OF ENFORCEABILITY
1.Valid Contracts: An agreement enforceable at law is a valid contract. An
agreement
2.becomes a contract when all the essentials of a valid contract as laid
down in Section 10 are
3.fulfilled. For example, A offers to sell his house for Rs. 10 lakhs to B
and B agrees to buy it
4.for this price is a valid contract.
5.Agreements falling short of legal requirements of Section 10 are Invalid
contracts. These are:
A. Void Contract: An agreement which was legally enforceable when
entered into but which has become void later on due to certain reasons
such as supervening impossibility of performance or illegality are known
as void contracts for e.g. when a war breaks out between the importing
country and exporting county.
3. Void Agreements: According to Section 2 (g), an agreement which is not
enforceable by law by either of the parties is said to be void. A void
agreement does not create any legal rights or obligations. It is void ab
initio, i.e., from its very inception, for example, an agreement without
consideration or with a minor.
4. 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. 2 (i)]. This happens when the
essential element of free consent in a contract is missing. When the
consent of a party to a contract is not free, i.e., it is caused by coercion,
undue influence, misrepresentation or fraud, the contract is voidable at
his option (Secs. 19 and 19-A). Thus, a voidable contract is valid and
enforceable until it is repudiated by the party entitled to avoid
it.
5. Unenforceable Contract: An unenforceable contract is one which
cannot be enforced in a court of Law because of some technical
defect such as absence of writing or where the remedy has been
Contracts may be classified into different categories depending upon their
enforceability or
validity, mode of creation or formation and extent of execution or
performance.
A. CLASSIFICATION OF CONTRACTS ON THE BASIS OF ENFORCEABILITY
1.Valid Contracts: An agreement enforceable at law is a valid contract. An
agreement
2.becomes a contract when all the essentials of a valid contract as laid
down in Section 10 are
3.fulfilled. For example, A offers to sell his house for Rs. 10 lakhs to B
and B agrees to buy it
4.for this price is a valid contract.
5.Agreements falling short of legal requirements of Section 10 are Invalid
contracts. These are:
A. Void Contract: An agreement which was legally enforceable when
entered into but which has become void later on due to certain reasons
such as supervening impossibility of performance or illegality are known
as void contracts for e.g. when a war breaks out between the importing
country and exporting county.
3. Void Agreements: According to Section 2 (g), an agreement which is not
enforceable by law by either of the parties is said to be void. A void
agreement does not create any legal rights or obligations. It is void ab
initio, i.e., from its very inception, for example, an agreement without
consideration or with a minor.
4. 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. 2 (i)]. This happens when the
essential element of free consent in a contract is missing. When the
consent of a party to a contract is not free, i.e., it is caused by coercion,
undue influence, misrepresentation or fraud, the contract is voidable at
his option (Secs. 19 and 19-A). Thus, a voidable contract is valid and
enforceable until it is repudiated by the party entitled to avoid
it.
5. Unenforceable Contract: An unenforceable contract is one which
cannot be enforced in a court of Law because of some technical
defect such as absence of writing or where the remedy has been
