CLASSIFICATION OF

CONTRACT

1. ENFORCEABILITY

2. METHOD OF FORMATION

3. EXTENT OF FORMATION

4. OBLIGATION TO PERFORMANCE
 1. VALID

5. ILLEGAL 2. VOIDABLE

ENFORCEABILITY

4.
UNENFORCE 3.VOID
ABLE
1. Classification Of The Contracts In The
Terms Of Validity/Enforceability

1. Valid Contract: A contract which fulfills all the

requirements prescribed by Sec 10 of the Act
is a Valid Contract.

2. Void Contract: A contract which ceases to be

enforceable by law becomes void when it
ceases to be enforceable.
Sec 2(g): “An agreement not enforceable by
law is said to be void.”
3.Void able Contracts: Sec 2(i)” An agreement which is
enforceable by law at the option of one or more of the parties there
to, but not at the option of the other or others, is a void able
contract.”

A contract is void able when one of the parties to the

contract has not exercised his free consent.

All the void able contracts are those which are

induced by:
a.Coercion

b.Undue Influence

c.Fraud

d.Misrepresentation
4.Unenforceable Contracts:
This Contract is neither Void nor Void able, it cannot be
enforced in the court because it lacks some item of evidence
such as:

1.Writing
2.Registration
3.Stamping
4.Where the remedy has been barred by lapse of time

Thus an unenforceable contract is a valid contract in law, but

due to the fact that it is incapable of proof, or because of
some technical defect therefore it cannot be enforced in the
court of Law.
5.Illegal Contracts:

It is Contrary to the Law and hence ab initio.

Every illegal agreement is void, but every void
agreement may not amount to illegal
agreement.
 Classification In Terms Of The Method Of
Formation

FORMAL SIMPLE

STANDARD
QUASI FORM
EXPRESS IMPLIED
Formal Contracts
A formal contract is one to which the law gives
special effect because of the formalities or the
special language used in creating it.

Example: Negotiable Instruments: These have

legal characteristics that differ from those of
ordinary contracts.
Simple or Informal Contracts

Simple Contracts are those for which the law

does not require a particular set of formalities
or special language. The party may use any
language or style they please as long as the
usual requirements for the contract (mutual
assent, consideration, etc.) are met
Types Of Simple Contracts

Express Contracts: Contracts which are made

orally or in writing are called express contracts.
There is an express promise in such cases. Thus
the parties offer and accept the way of words
spoken or written.
Implied Contracts: A contract is said to be
implied or tacit when it can be inferred from the
conduct of the parties. There is an implied offer or
implied acceptance which results in an implied
promise and thus an implied contract.
 Quasi Contracts:
These are agreements which are ascribed the nature of
contract by the law. Where no express or implied
contracts exists between the parties, the law creates and
enforces legal rights and obligations under certain
circumstances. These agreements are known as Quasi
Contracts. The obligations in a quasi contract are not the
result of an agreement; they only resemble the
obligations that arise from contracts.
Example:
 Necessities supplied to a minor
 Finder of lost goods

Any amount of money paid or goods delivered to a person by

mistake or under coercion are to be returned or repaid.
 Standard Form Contracts:

Standard form contracts have printed forms of

standardized contracts containing a number of terms
and conditions. The individuals entering into such
contracts can hardly negotiate and they have to accept
the terms and conditions already mentioned.
Example:
life Insurance Corporations
Railways
Unit Trust Of India etc.

Where similar nature of contracts are agreed with so

many people.
 3. Extent Of Formation

EXECUTED EXECUTORY
CONTRACT CONTRACT

Executed Contract: An executed contract is a contract

that is completely performed and nothing remains to be
done by either party to the contract.

Executory Contract: An executory contract is one in

which both the parties may agree to do some thing in the
future or one of the parties have performed his part of
the contract and the other party has yet to perform his
[part of the promise. Thus some thing remains to be
done in furtherance of the contract.
 4. Obligation To Performance

UNILATERAL BILATERAL
CONTRACTS CONTRACTS

Unilateral Contracts: A unilateral contract is a contract

where the obligation to perform remains only one party
to the contract, the other party already having performed
his part of the contract.

Bilateral Contracts: In a bilateral contract obligation

rests on both the parties to the contract to perform their
promise. The promise may be to do or refrain from doing
some act. In these contracts both can sue the other for
breach of contract. This category comprises of executed
and executory contracts.