What are the various types of contracts?

Finance ManagementBanking & FinanceGrowth & Empowerment

Contracts are divided as follows −

  • validity/enforceability

  • formation

  • performance

Sub classification of contracts is given below −

Based on
Validity/enforceability
 Formation Performance
Valid contractsExpress contractExecute contract
Void contractsImplied contractExecutor contract
Voidable contractsQuasi-contrac
Illegal agreements
Unenforceable contracts
E.com. contracts
  • unilateral contract

  • bilateral contract

Now, let us understand the types of contracts in detail.

Validity/enforceability

  • Valid contract − It is an agreement, which is binding and enforceable.

  • Void contract − It is a contract, which cannot be enforced by law.

  • Voidable contract − If consent of a party is not free then, the contract becomes voidable contract.

  • Illegal contract − The law forbids it to be made for a contract.

  • Unenforceable contract − If both the parties cannot sue on contract due to technical reasons, it is an unenforceable contract.

Formation

  • Express contract− The terms are expressed in writing in an express contract.

  • Implied contract − If a contract comes into existence due to implications, it is an implied contract.

  • Quasi contract − If a contract resembles a contract, then it is a quasi-contract.

  • E.com. contract − If the parties enter into a contract using E-commerce, it is an E.com. contract.

Performance

  • Execute contracts − Forbearance is brought on record.

  • Executor contract − The contracts which are performed in future. There are two types of executor contracts which are as follows −

    • Unilateral contract− It is a one-sided contract. One party performs their duty and the other is outstanding.

    • Bilateral contract− The obligations and outstanding are on both the parties.

raja
Updated on 17-May-2022 14:15:41

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