Types Of Contracts

Contracts based on validity can come in five different forms, including valid contracts, void
contracts, voidable contracts, illegal contracts, and unenforceable contracts. A valid contract is
one that is legally enforceable, while a void contract is unenforceable and imposes no obligations
on the parties involved. If a contract is established under certain physical or mental pressure, it is
called a voidable contract. Such a contract may become a valid or void contract in the future. An
illegal contract refers to a contract with unlawful object, whereas an unenforceable contract is a
contract that has not fulfilled certain legal formalities.
An unenforceable contract or transaction is one that is valid but one the court will not
enforce. Unenforceable is usually used in contradiction to void (or void ab initio) and voidable.
The contract is considered to be 'illegal'. When the terms and conditions of the contract are
mistaken by either of the party – When the terms and conditions of the contract have not been
understood by the party or are vague in nature.