Classification of Contracts by
Formation, Performance, Execution
| Other Contracts
Classification of Contracts
according to formation
According to the mode of formation of contracts,
contracts may be classified into three namely,
1.Express Contract,
2.Implied Contract, and
3.Quasi – Contract.
A contract is said to be an express contract, if the terms
of a contract are expressly agreed upon between the
1.
parties (either by words spoken or written) at the time
of formation of the contract. An express promise
results in express contract. A promise is said to be an
Express
express promise, when the offer or acceptance of any
promise is made in words.
Contract Example:
1. the contract of a property is made expressly by using clear
words written on a stamped paper.
2. if a asks b whether he will purchase his pet dog and b accepts,
it can be also termed express contract. Oral promise and
acceptance, if made clearly, constitute a legal contract expressly
made
An implied contract is one for which the
proposal or acceptance is made otherwise
than in words. Where the proposal or
acceptance of any promise is made otherwise
than in words, the promise is known as
2. Implied implied promise. Implied contracts are
inferred from the circumstances of the case
Contract and conduct of the parties.
For example, when A takes a cup of milk in a
hotel, there is an implied contract.
A quasi-contract is one, which is created
by law. In the quasi-contract, there is no
intention on either side to make a
contract. In a quasi contract, rights and
3. Quasi – obligations arise not by an agreement but
by operations of law.
Contract
For example, where certain letters are
delivered to a wrong addressee, the
addressee is under an obligation to return
the letters.
According to the extent of
performance of contracts,
contracts may be classified as;
Classification
of Contracts
according to Unilateral Contract, and
performance
Bilateral Contract.
It is also called as one-sided contract. In a
unilateral contract, only one party has to
1. satisfy his obligation at the time of the
formation of it, the other party having fulfilled
his obligation at the time of the contract or
Unilateral before the contract comes into existence.
Contract For example, A takes a public auto to go to
Mount Road. A contract comes into existence
as soon as A was dropped in Mount Road. By
that time, auto man has fulfilled his
obligation, only A has to fulfill his obligation
i.e. paying the auto- man.
A contract is said to be a bilateral contract
where the obligations of both the parties
to the contract are pending at the time of
2. formation of the contract. In this type of
contract, a promise on one side is
Bilateral exchanged for a promise on the other.
Contract For example, A promises to stitch a blouse
and 0 promises to pay Rs.30. Here A
promises to stitch the blouse and 0
promises to pay. Thus each party is both a
promisor and a promisee.
According to the execution of the
contracts, contracts are classified
into 2 as
Classification
of Contracts
according to Executed Contract, and
execution
Executory Contract.
A contract is said to be executed contract
when both the parties to contract have
performed their share of obligation.
1.
Executed Example;
Contract • A enters a contract with b who is a videographer to
cover a marriage function. The payment will be made
if B delivers the video footage to Aafter editing. This is
a fully completed contract which is executed.
• In the case of purchase of a house, the house owner
signs a sale agreement with the buyer and purchase
money is paid in full at the time of execution. This is a
fully completed contract and is called an executed
contract.
An executory contract is one, which is either
2.
wholly unperformed, or something remains in
there to be done by both the parties to contract.
Sometimes, a contract may be partly executed and
Executory partly executory.
Contract Example; A wants to buy an innovative property of
B. A gives token advance and enters an ‘agreement
of sale’ with B to purchase the property on or
before a specific date. Here full obligation are not
complete as A has not paid the full amount and B
has not delivered the title to A.
1. Contingent Contract
Other Contracts
Besides the Contingent contract is one, which is collateral to do or not to do
something, if some event collateral to such contract, does or does not
above said happen. For example, A agrees to sell a certain piece of land to B, in case
he succeeds in his litigation concerning that land. This is a contingent
classification, contract.
there are other The essential elements of a contingent contract are:
types of contract
also. Contingent 1. There is an uncertain event,
Contract is one 2. The uncertain event is collateral to the contract,
3. The performance of the contract depends upon the contingency.
such type.
Contracts of insurance, indemnity and guarantee are the
commonest instances of a contingent contract.
