Type of Contract. // On the basis of the validity/enforceability.

types of contract

(A) On the basis of validity :-

(1) Valid Contract :-

Contract is formed by two or more parties. Contract is a valid contract when it satisfies all condition required for enforceability by law.

Section2(h) of Indian contract act 1872 given that an agreement enforceable by law is a contract and an agreement become a valid contract when all the essential elements of a contract as laid down in section (10) of Indian contract act 1872 are fulfilled:-

(a) Mede by the free consent of parties

(b) Competent to contract

(c) For a lawful Consideration

(d) A lawful object

Example…………………

(2) Void Contract :-

A contract without any legal effect is said to be a void contract. Void contract is given under section 2(j) of I.C.A, it given that a contract which cases to be enforceable by law become void when it cases to be enforceable. An agreement not enforceable by law is said to be void agreement and void agreement is given under section 2(g) of I.C.A.

If agreement is void than contract is void contract.

Ex :- Contract with a minor

Case:- Mhari Bibi Vs. Dharmadas Ghose(1903)

In this case, laid down that a Contract entered into with a minor is void ab-into, because not enforceable.

(3) Voidable Contract:-

Voidable contract is define under section 2(i) of India Contract 1872 : “An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract.

Example:- A Contract entered into out of coercion undue 🔞 , influence, fraud, mis prestation, mistake etc. is said to voidable.

Example:- A person ‘A’ agrees to pay a sum of Rs. 10,0000 to a person B for an antique chair. This contract would be valid, the only problem is that person B is a minor and can’t legally enter a contract.

(4) Illegal Contract :-

A contract is illegal if it involves doing something that is a criminal act or civil wrong or again the public well-fair. Money paid under illegal contract can not be recovered.

Example :- If a fireman dealer enters into a contract to sell a gun to a person licensed to hold on knowledge that he is will use it to kill someone, that contract will become illegal.

(5) Unenforceable Contract :-

An enforceable is a contract , which is in all respect , but can not be enforceable in court of law because of some technical defects and faults such as absence of writing , registration requisite stamp etc.

For example:- A agrees to sell to B 100kgs of rice for 10,000/-. But there was a huge flood in the states and all the rice crops were destroyed. Now, this contract is unenforceable and can not be enforced against either party.