1.

Valid Contract:
A valid contract is an agreement between two or more parties that meets all the essential
legal requirements and is legally binding. For a contract to be void, certain elements must be
present:
 There must be a clear offer by one party and an unconditional acceptance of that offer by
the other party.
 The subject matter of the contract must be legal and not against public policy.
 There must be an exchange of something of value between the parties.
 Both parties must have the legal capacity to enter into the contract.
2. Void contracts
 A void contract is a contract that is considered null and void form the outset, meaning it has
no legal effect, and the parties are not bound by its terms. A void contract lacks at least one
essential element required for a valid contract. Consequently it cannot be enforced by either
party, and the parties cannot seek legal remedies for any non-performance or breach.
 For example, a contract to commit an illegal act or a contract with a person who lacks the
legal capacity to contract is a void.
3. Voidable Contracts:
 A voidable contract is a contract that is initially valid and enforceable, but due to certain
circumstances or the presence of a legal defect, one of the parties has the option to either
enforce or void the contract. The party with the right to void the contract can choose to do
so, making the contract voidable.
 Once the party with the right to void exercises their option, the contract becomes void, and
both parties are released from their obligations.
4. Essentialia, Neutualia, and Incidentalia of a contract:
 Essentialia: The essential elements or requirements that must be present in a contract for it
to be considered valid, such as offer, acceptance, consideration and legal purpose.
 Neutualia: Additional terms and conditions in a contract that are not essential but may be
included to provide further details about the agreement.
 Incidentalia: Minor details in a contract that do not substantially impact the validity or
enforceability of the agreement.
5. Unenforceable Contracts:
 Unenforceable contracts are contracts that may initially appear valid, but due to some legal
or technical issues, a court or authority will not enforce them. The primary difference
between the void and unenforceable contracts is that an unenforceable contracts may still
be valid and binding between the parties, but a court will not enforce it if a dispute arises.
6. Performance:
 Performance is the context of contracts refers to the fulfilment or completion of the
obligation and promises made by the parties under the contract. When both parties perform
their respective duties as outlined in the contract, the contract is said to be executed or
perfumed.