Q 2.4. Discuss the different types of contract.

Answer: –

Different Types of Contracts

Contracts can be classified based on their formation, enforceability, and execution. The Indian Contract Act, 1872, recognizes various types of contracts, including the following:

1. Based on Formation:

1. 1. Express Contract – Terms are clearly stated in written or spoken words (e.g., a written agreement to sell goods).
   2. Implied Contract – Formed through conduct rather than words (e.g., taking a taxi implies agreeing to pay the fare).
   3. Quasi-Contract – Not a real contract but imposed by law to prevent unjust enrichment (e.g., payment for mistakenly delivered goods).
   4. E-Contract – Formed electronically through online agreements.
2. Based on Enforceability:
   1. Valid Contract – Legally enforceable as it meets all essential conditions.
   2. Void Contract – No legal effect due to unlawful object or impossibility.
   3. Voidable Contract – One party can cancel due to coercion, fraud, or misrepresentation.
   4. Illegal Contract – Forbidden by law (e.g., contracts for illegal activities).
   5. Unenforceable Contract – Legally valid but cannot be enforced due to technical defects.
3. Based on Performance:
   1. Executed Contract – Both parties have completed their obligations.
   2. Executory Contract – Obligations are yet to be fulfilled by one or both parties.
   3. Unilateral Contract – One party has performed their part, and the other must fulfill theirs.
   4. Bilateral Contract – Both parties have ongoing obligations.

Thus, contracts vary based on formation, enforceability, and execution.