Legality

The contract must be for a legal purpose, the contract agreement can not violate
the law. The contracts cannot be created to govern the trade of illegal products or
services. It also contain legally enforceable terms and conditions.
2.1. TYPES OF CONTRACT

we can find three types of contracts

2.1.1. On basis of the validity:

2.1.2. On basis of the performance:
There are various types of contract, one such type are contacts based on their
performance. The basis for this type is whether the contract is performed or still
to be performed.
We can find three types of contracts on basis of the performance:
a) Unilateral contract
As the name suggests these are one-sided contracts. It usually comes into
existence when only one party makes a promise, which is open and available to
anyone who wishes to or can fulfil the said promise. The contract will only be
fulfilled once someone fulfils the promise. The promise has been made by one
party in the contract.
Example A promises to pay B a reward if the finds his dogs. B is not under
any obligation to find the dog but if he does A will be required to fulfill his
promise of the payment of reward.
b) Bilateral contract
By contrast, a bilateral contract is one that has two parties. It is a traditional type
of contract most commonly known and occurring. Here both parties agree to the
terms of the agreement and thus enter into a contract. Hence it is also known as
a reciprocal contract. In bilateral contracts, both parties have usually agreed to
a time frame to carry out the said contract.
c) Executed contract
This is a type of contract where both the parties involved in the contract have
fulfilled their respective obligations as specified in the agreement. Executed
contract meaning is when an agreement has been carried out exactly how it
was supposed to be carried out. In such contracts, the parties have fulfilled
their promises and also performed their duties soon after entering the contract.
Buying and selling of goods or services usually fall under the category of
executed contracts. Here, there is hardly any trouble regarding the date of
execution because these contractual duties are fulfilled instantly.