Types of contracts

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• Bilateral contracts: These are the most common type of contract, and they involve
two parties who agree to exchange something of value
• Unilateral contracts: These contracts involve only one party making a promise to
another party
• Express contracts: These contracts are created when the parties involved clearly and
explicitly state their agreement, either orally or in writing
• Implied contracts: These contracts are created when the parties involved do not
explicitly state their agreement, but their actions or conduct imply that they have
reached an agreement
• Formal contracts: These contracts are written down and signed by the parties
involved

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• Informal contracts: These contracts are not written down, and they are often based
on spoken agreements or customs
• Executed Contract: A contract in which all of the obligations of both parties have
been completely fulfilled
• Executory Contract: Definition: A contract in which some or all of the obligations of
one or both parties remain outstanding or unfulfilled
• Reciprocal Promises: In a contract, reciprocal promises refer to the commitments
made by each party to the other
• Validity: Valid, Void, Voidable

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Government • Procurement contracts: involve the purchase of

goods, materials, equipment, or software by the government
Contract • Service contracts: involve the hiring of individuals or companies to
provide specific services like consultancy, maintenance, or operation
of facilities
• Works contracts: involve the construction, development, or repair of
infrastructure projects like roads, bridges, buildings, or irrigation
systems
• Tendering: The government invites bids from interested vendors
through open tenders or closed tenders
• Technical evaluation: Bids are evaluated for technical compliance
with the tender requirements
• Financial evaluation: Technically qualified bids are further evaluated
based on price and other commercial terms

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Government • Contract award: The contract is awarded to the bidder who meets all the
requirements and offers the most advantageous terms
Contract • Constitution of India, Article 299: mandates that all government contracts be
made in writing and executed on behalf of the President or Governor
• General Financial Rules : prescribe the procedures for
procurement, tendering, and contract management
• Central Vigilance Commission : oversees compliance with ethical norms and
prevents corruption in government contracts
• State-specific procurement rules: Each state may have additional rules and
regulations governing government contracts
• Transparency and fairness: Ensuring a fair and transparent bidding process is
crucial to avoid corruption and favoritism

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Government Contract • Efficiency and timely

completion: Streamlining the procurement
process and project execution is essential
for timely completion of projects within
budget
• Promoting participation of
MSMEs: Encouraging participation of
Micro, Small and Medium Enterprises in
government contracts can boost economic
growth and create jobs

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