Classification of Contract - Definition, Explanation, Meaning, Examples | Bzziii.com

Explain - Classification of Contract ?

or

Define the following:

(a) Express Contract

(b) Implied Contract

(c) Executed Contract

(d) Unforceable Contract

(e) Quasi Contract

(f) Standard form Contract

(g) Illegal Contract

(h) Executory Contract

Contracts on the basis of formation

(a) Express Contract: An Express contract is a contract which is expressed in words spoken or written U/S 9 of ICA, 1872.Where the parties to the contract express (orally or written or online)the intention to enter into a contract and then form the contract, such a contract is called an express contract.

An express contract can be sub-divided as:

(i) Written contract

(ii) Oral Contract

(iii) E-Commerce Contract

Explanation:

(i) Written contract: Where the parties enter into a written contract and mutually agreed upon the terms and conditions of the contract, such a contract is said to be expressed in writing.

(ii) Oral Contract: A contract can be expressed orally also and it will be enforceable by law.An oral contract is legally enforceable of law unless required by any other law to be in written (where written agreement compulsory). But all oral contracts should have a clear and satisfactory evidence about its formation and its contents.

(iii) E-Commerce Contract: Where the parties to the contract express their intention to enter into a contract via internet, such contracts are called as E-Commerce contracts.In this Contract all the documents in electronic form.

(b) Implied Contract: A Contract which is not expressed in words (spoken or written) but is implied from the circumstance of the case or the conduct i.e. behavioyr of the parties or from the previous dealing between the parties is known as implied contracts U/S 9 of ICA, 1872.

Example: After eating food in a restaurant, it is implied to pay the bill.It is an implied contract.

(c) Quasi Contract : A quasi or a constructive contract is a contract which is not formed by the parties to the contract but is enforced on the parties to the contract by the Court of Law.

Contracts on the basis of performance

(a) Executed Contract: In a contract both the parties promise to each other to act or to performed their part of the obligation.

(b) Executory Contract: Executory Contract is divided in two types they are - bilateral executory contract and Unilateral executory contract.

(i) Where both the parties do not perform their part of obligation, Such a contract is called as bilateral executory contract.

(ii) Where one party has performed but other party did not perform, such a contract is called as Unilateral executory contract.

Examples:

Ram entered into a contract with a carpenter for getting his wood table and in return pay the carpenter Rs. 10k

Executed Contract: The carpainter if made the table and Ram paid him Rs. 10,000/-

Bilateral executory contract: The carpenter did not made the wood table and ram did not pay him Rs. 10,000/-

Unilateral executory contract: The Carpenter made the wooden table but joy did not pay him Rs. 10,000/-

Standard form contract

(a) Standard form contract: In a standard form contracts, the terms of the contract are pre-drafted by one of the parties and the other party has just sign it for acceptance. In a such a contract the terms and conditions of the contract are not settled by the process of negotiation between the parties.

Examples:

• A draft prepared by Insurance Company for Insurance Policy.
• Terms & conditions printed on a Railway Ticket for passengers.

Contracts on the basis of Validity of Contract

(a) Valid contracts: An agreement enforceable by law is a valid contract. There for an agreement which satisfies all the essentials of a valid contract becomes enforceable by law and thus is called a valid contract.

(b) Void Agreements: An agreement not enforceable by law is a void Agreement. An agreement which does not fulfill all the essentials of a valid contract, can become a void agreement, because of the lack any of those essentials.

Such as:

• an agreement without consideration is void.
• an agreement with minor is void.

(c) Illegal Agreements: An agreement's object or purpose of which is unlawful is called an illegal agreement. An illegal Agreements are not enforceable by law because of their illegal purpose and therefor all illegal agreements become void agreements.

(d) Void Agreements: A void agreement means the contract or agreement is no longer enforceable.Void contract was a valid contract when formed, today it has become impossible to perform, hence void.

(e) Voidable Contract: A 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.

Whose consent was not free such party is called as an aggrieved party or an innocent party.

(f) Un-Enforceable Contract: An un-enforceable contract is a contract which is not enforceable by law because of some technical defect existing in it. Once that defect is cured, the contract becomes enforceable by law.