Classification of Contracts

CLASSIFICATION / KINDS OF
CONTRACT
On the basis of :
2. Enforceability
3. Mode of creation
4. Extent of execution
5. English law
VOID AGREEMENT
 Sec.2(g) : “an agreement not enforceable by

law is said to be void”
 Void ab-initio
 Absence of one or more essential elements
of valid contract but ‘free consent ‘
 Agreements expressly declared void
Obligation
Sec.65 calls for restitution of benefits received

from void contract
When ?
Restitution is allowed in the following

circumstances
1.Agreement caused by bilateral mistake of
essential facts
2.Minor committing fraud by misrepresenting
his age
3.In case of valid contracts
Unenforceable contract
Which cannot be enforced in the court of law

because of :
b) Technical Defects: Absence of writing
c) The remedy has been barred by Lapse of
Time
* in the event of repudiation of such contract, the aggrieved party wil not be entitled to legal remedies
Illegal agreements
 Which transgress some rules of basic public

policy
 Is forbidden by law
 Criminal in nature
 Fraudulent
 Immoral
 Involves or implies injury to the person or
property of another
CASE
My dear friend Vijay borrows Rs.50000 from

Anil and enters into a agreement with
Lashkar e Taiba to import 20 ‘A K -47 ‘
Anil knows the purpose of loan .
Later Vijay refused to pay the money …. What

can Anil do !!!!
An illegal agreement even taints the collateral
agreements with illegality .
Classification according to
Formation/Mode of Creation
EXPRESSED IMPLIED QUASI

EXPRESS CONTRACT
 Ifthe terms of the contract are expressly

agreed upon (whether by words spoken or
written )at the time of formation of contract
Sec(9):where the offer and acceptance of any
promise is made in words,the promise is said
to be express.
IMPLIED CONTRACT
 SEC(9):where the proposal or acceptance of

any promise is made otherwise than in
words, the promise is said to be implied
 An implied contract is one which is inferred

from the acts or conducts of the parties
or course of dealings between them
 Gettinginto bus
 Takes a meal in the restaurant
 Coolie
Quasi/constructive Contract
These contracts does not arise by the virtue of any agreement,

Expressed or implied between the parties but the law infers or
recognizes a contract under certain special circumstances
 It is the contract created by law

 It imposes a legal obligation on a party who is required to
perform it.
 “A person should not be allowed to enrich himself unjustly
at the expenses of another”.
CASE:1
Mr.Sabhilash a big businessman in vizag

,supplies goods to his customer Mr.Adi...who
consumes them…..
Will Adi pay for the goods ?
Case2:
In the above case Sabhilash’s partner Mr.Raju

delivers the goods to Mr.Ravi mistaking Ravi
for Adi…
Do ravi need to pay for the goods consumed?
Classification according to
Performance /Extent of execution
CONTRACT
EXECUTED EXECUTORY
EXECUTED CONTRACT
Contract where both the parties have

completely performed their respective
Obligations
CASE
Gabbar singh is a renowned dacoit in

Prakasham dist.govt has announced a cash
prize of Rs.50,000 to a person who catches
him live of dead . Mr.Rambabu a brave man
catches Gabbar singh and hands him over to
police ….
Is the contract said to be executed ?

EXECUTORY CONTRACT
Contract in which both the obligations are

Outstanding.
Partly executed and Partly executory
Contract
Unilateral Bilateral
UNILATERAL CONTRACT
Contract where only one obligation remains

outstanding, the other obligation having
being performed at the time of or before the
formation of the contract
Bilateral Contract
At the time of formation of contract the

obligation on the part of both the parties to
the contract are outstanding
CLASSIFICATION OF CONTRACT IN
ENGLISH LAW
CONTRACT
FORMAL SIMPLE
FORMALCONTRACT
CONTRACTS OF RECORDS CONTRACTS UNDER SEAL

Contracts of Records
A contract of record is either a judgment of

court or Recognizance
Recognisance:
 Itis a written acknowledgement of debt due

to the Crown.It is usually met with in
connection with criminal proceedings
 Contracts of records derive their binding
force from the authority of the court. They
lack the essential element consensus.
They are enforced by court

Contracts Under seal
It derives its binding force from its form alone.

It is in writing and is signed,sealed and
delivered by the parties. It is also called as
deed or specialty contracts.
Contracts under seal
Contracts which must be made under seal , includes

2. Contracts made without consideration
3. Contract made by corporations
4. Conveyance in legal estate of land or any interest
in land ,including leases of land for more than 3
years .
5. A transfer of a british ship or any share therein
Simple contracts
All contracts which are not made under seal

are simple contracts
All contracts under Indian law must be

supported by consideration
OFFER AND ACCEPTANCE
Offer : definite
Acceptance : unconditional
What ?
Sec2(a):A person is said to have made a

proposal when he “signifies to another his
willingness to do or to abstain from doing
anything, with a view to obtaining his assent
of that other to such act or abstinence”.
Sec2(c):when the offeree accepts the offer, he is called
the acceptor or Promisee
.
HOW?
1.EXPRESS
2.IMPLIED
3.SPECIFIC
4.GENERAL
EXPESS OFFER
My Dear intelligent students …..I DON’T

BELIVE IN REPEATING……PLEASE USE
YOUR BRAIN AND ANSWER
IMPLIED OFFER
My Dear intelligent students …..I DON’T

BELIVE IN REPEATING……PLEASE USE
YOUR BRAIN AND ANSWER
ALSO GIVE EXAMPLES …

SPECIFIC OFFER:
Offer made to a definite person, it can be

accepted only by that person to whome it is
made
GENERAL OFFER
When the offer is made to the world at large.
Ex: Sach ka samna

Ex: Information about thief's
Ex: finding lost goods/things
*acceptance can be made only by the first person who gives the information
What constitutes an offer
1. Intention to be bound by it
2. View to obtain the assent of offeree
3. Definiteness
4. Communication to offeree
Legal rules as to offer
A valid offer must be in conformity with the

following rules:
1.An offer must be ‘express’ or implied
Implied or Express
1.A says to B that he is willing to sell his house

to him for Rs.50000
2.APSRTC runs different buses in different
routs
3.A shoe shiner starts to shine some one’s
shoes without being asked to do so
2.An offer must contemplate to give rise to
legal consequences and be capable of
creating legal relationship
Valid offer or not
A promised to his wife that he will take her to

a movie every Friday
 B invited his friend C for dinner
 A offers to sell his mobile(6600) to C for
Rs.5000.
3.The terms of offer must be definite,
unambiguous and certain and not loose and
vague.
case
1. A an owner of 3 cars says to B, “ I will sell

you my car”.
2. B says to C that sell me your Car I will give
you amount that I can afford.
3. X purchased a horse from y and promised
to buy another if the first one proves lucky.
An invitation to offer is not an offer

Classification of Contracts

Uploaded by

Copyright:

Available Formats

Classification of Contracts

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Classification of Contracts

Uploaded by

Copyright:

Available Formats

CLASSIFICATION / KINDS OF

 Sec.2(g) : “an agreement not enforceable by

Sec.65 calls for restitution of benefits received

Restitution is allowed in the following

Which cannot be enforced in the court of law

 Which transgress some rules of basic public

My dear friend Vijay borrows Rs.50000 from

Later Vijay refused to pay the money …. What

EXPRESSED IMPLIED QUASI

 Ifthe terms of the contract are expressly

 SEC(9):where the proposal or acceptance of

 An implied contract is one which is inferred

These contracts does not arise by the virtue of any agreement,

 It is the contract created by law

Mr.Sabhilash a big businessman in vizag

In the above case Sabhilash’s partner Mr.Raju

Contract where both the parties have

Gabbar singh is a renowned dacoit in

Is the contract said to be executed ?

Contract in which both the obligations are

Contract where only one obligation remains

At the time of formation of contract the

CONTRACTS OF RECORDS CONTRACTS UNDER SEAL

A contract of record is either a judgment of

 Itis a written acknowledgement of debt due

They are enforced by court

It derives its binding force from its form alone.

Contracts which must be made under seal , includes

All contracts which are not made under seal

All contracts under Indian law must be

Sec2(a):A person is said to have made a

My Dear intelligent students …..I DON’T

My Dear intelligent students …..I DON’T

ALSO GIVE EXAMPLES …

Offer made to a definite person, it can be

When the offer is made to the world at large.

Ex: Sach ka samna

A valid offer must be in conformity with the

1.A says to B that he is willing to sell his house

A promised to his wife that he will take her to

1. A an owner of 3 cars says to B, “ I will sell

You might also like