The Contract

Act
1872
Types of Contracts

Learning Objectives
Contracts can be classified into different
types based on 3 different criterions :
Validity
Formation
Performance

Classification of Contracts

Classification:
Based upon
Validity

Classifications Based on Validity

Voidabl
e
Contract

Unenforceable
Contract

Illegal
Agreements

Void
Agreement

Void Contract

Voidable Contract
Voidabl
e
Contract

Void
XUnenforceable
threatens
to kill Y if he Agreement
Contract
does not sell his house to X
for TK.1,00,000.
Y agrees to sell the house.
Since
Ysby
consent
hasthe
been
obtained
coercion,
Illegal
Agreements
contract is voidable Void
at Contract
option
of Y.
the

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. [Sec. 2(i)]

Void Agreement
Voidable
Contract

Unenforceable
Contract

Illegal
Agreements

Void
Agreement

Void Contract

An
agreement
not
enforceable by law
is said
to be void.
create
does
A voidagreement
not legal any right
obligation. or
Such agreement is
void-ab-initio
from the beginning
itself.

Void Contract
E.g.: in the caseVoiodaf bliemport
agreement
contract, the is Conetnar fcot
subsequently
war brakes
rceable,
out becomes void contract.
Unenforceable
Contract

Illegal
Agreements

but
if
then

Void
Agreement

Void Contract

it

A
contract
which
to
be
ceases
enforceable by
becomes void law
when it
so ceases to be
enforceable. Sec. 2(j) .
In this case when the
contract was entered
into,
it may
and
binding
on be
thevalid
parties
as
per
law,
subsequently
but it
becomes void.

Illegal Agreements
Mr. Raja borrows TK.5,000 from Mr. Rafi for
the purpose of importing prohibited goods.
Mr. Rafi
knows of the purposes of
agreement. The transaction between Mr.
Rafi and Mr. Raja is collateral to the
agreement of importing . It is illegal since the
main agreement is illegal.
Contract

Unenforceable
Contract

Illegal
Agreements

Void
Agreement

Void Contract

An
agreement is
illegal
one, which is against
some basic rule of public
policy or is of criminal in
nature or is immoral.
An illegal agreement is
not only void between the
immediate parties but has
its further effect that even
the collateral transactions
to it become tinted with
illegality.

Unenforceable Contract
Voidable
Contract

Unenforceable
Contract

Illegal
Agreements

Void
Agreement

Void Contract

An
contract
is one which
unenforceable
cannot be enforced in a
court of law because of
some technical defect
such as under-stamped
or absence of contract
in writing.
Such
contracts
becomes
once
the enforceable
defect is removed.
technical

Classification of Contracts

Classification:
Based upon
Formation

Classifications based on Formation

Express
Contract

Quasi
Contract

Implied
Contract

Express Contract
Express
Contract

Quasi
Contract

Implied
Contract

A contract is called as
Express Contract if
the terms of the
contract are expressly
agreed
upon
(whether
by words
spoken or written) at
the time of formation
of contract.

Implied Contract
Express
Contract

Quasi
Contract

Implied
Contract

In this case the

contract comes
into existence by
the acts or
conducts of the
parties.
-E.g., Getting
into a Public bus

Quasi Contract
Example Trader leaves the goods at Mr. A s
house by mistake. Mr. A treats the goods as his
own. Mr. A is bound to pay for the goods.

Express
Contract

Quasi
Contract

Implied
Contract

A quasi
contract is
created
one, by which
law.
It is
is an obligation
which law creates
in absence of an
agreement.

Classification of Contracts

Based
upon
Performance

Classifications: Performance
Based on
Performance

Executory
Contract

Executed
Contract

Unilateral

Bilateral

Executory Contract

Based on
Performance

Executory
Contract

Executed

A contract in
which both the
any
partiesor
one party to the
contract has to
still perform their
of obligation.
share

Contract
Unilateral
Executory
Contract

Bilateral
Executory
Contract

Mr. A entered into a contract with

the porter for lifting his 5 bags.
Porter agreed to lift all the 5 bags
for TK. 100. AT present it is an
executory contract since the porter
has not lifted the bags and Mr. A
has not paid him.

Executory Contract
Unilateral
Executory Contract
Where any one party to the
contract has to still perform
its share of obligation

Based on
Performance

Executory
Contract

Executed
Contract

Unilateral
Executory
Contract

Bilateral
Executory
Contract

Bilateral
Executory Contract
Where
both the
parties
the
contract to
has to still
perform their share of
obligation

Executed Contract
Example Mr. A entered into a
contract with the porter for lifting his
5 bags. Porter agreed and lifts all
the 5 bags for TK. 100. Here the
porter has lifted the bags and Mr. A
has paid him.
Based on
Performance

Executory
Contract

Executed
Contract

Unilateral
Executory
Contract

Bilateral
Executory
Contract

A contract in which
both the
parties to have
the
contract
completely
their
performed
share of obligation
and
nothing
remains tobe
done
either
by
the parties of

Summary
Contracts
Based on
Validity

may be classified :
Based on

Based on
Performance

Voidable Contract

Formation
Express
Contract

Executory Contract

Void Agreement

Implied Contract

Executed Contract

Void Contract

Quasi Contract

Illegal Agreements
Unenforceable
Contract