The Indian Contract Act, 1872

Types of Contract
• Validity

o Valid Contract

o Void Contract

o Voidable Contract

o Illegal Agreement

o Unenforceable Contract

• Formation

o Express Contract

o Implied Contract

o Quasi Contract

o E-Contract

• Performance of Obligation

o Executed Contract

o Executory Contract

On the basis of the Validity

Valid Contract

• An agreement which is binding and enforceable is a valid contract

• All essentials – Section 10

Void Contract

• A contract which ceases to be enforceable by law becomes void when it

ceases to be enforceable

• Destruction of a subject matter

Voidable Contract

• An agreement which is enforceable by law at the option of one or more

parties thereto, but not at the option of the others is a voidable contract.

• Agreement by coercion, undue influence, fraud or misrepresentation

Illegal Agreement

• An agreement which the law forbids to be made

• Dealing in drugs, kidnap, murder agreement

Unenforceable Contract

Where a contract is good in substance but because of some technical defect i.e.

absence in writing, barred by limitation etc., one or both the parties cannot sue

upon it, it is described as an unenforceable contract.

• Not in Writing

• Not Registered

• Barred by Limitation

Void Contract Voidable Contract

Contract ceases to be enforceable by Contract is enforceable at the option of
law the aggrieved party
Due to sudden & unexpected events or Due to coercion, undue influence,
before the performance becomes due fraud & misrepresentation
Does not provide any legal remedy for The aggrieved gets a right to rescind
the parties to the contract the contract an to declare it void
otherwise it remains valid

Void Agreement Illegal Agreement

Subject matter is not illegal Subject matter is illegal
Not forbidden under law Is forbidden under law
Parties are not liable for any Parties to illegal agreements are liable
punishment under the law for punishment
Collateral agreements need not be Agreements collateral to illegal
void. It may be valid agreements are always void
 Void agreement is not void-ab-initio All illegal agreements are void-ab-initio
but may subsequently become void

On the basis of the Formation

Express Contract

A contract would be an express contract if the terms are expressed by words

either in oral or in writing.

Implied Contracts

Implied contracts come into existence by implication or by conduct of parties.

Quasi Contract

A contract in which there is no intention on part of either party to make a contract

but law imposes a contract upon the parties

• No Offer

• No Acceptance

• Enforced by Law

An obligation that the law creates in the absence of an agreement between the

parties

E-Contracts

A contract is entered into by two or more parties using electronics means, such

as e-mails is known as e-commerce contracts.

On the basis of the Performance of Obligation

Executed Contract

A contract in which both the parties have performed their respective

obligation/promises.
Executory Contract

An executory contract is one where one or both the parties to the contract have

to perform their obligations in future.

Unilateral Contract

An unilateral contract is one in which only one party has to perform his obligation

after formation of the contract and the other party has fulfilled his obligation at

the time of the contract.

Bilateral Contract

A bilateral contract is one in which the obligation of both the parties to the

contract is outstanding.