What are the various types of contracts?

Contracts are divided as follows −

• validity/enforceability

• formation

• performance

Sub classification of contracts is given below −

Now, let us understand the types of contracts in detail.

Validity/enforceability

• Valid contract − It is an agreement, which is binding and enforceable.

• Void contract − It is a contract, which cannot be enforced by law.

• Voidable contract − If consent of a party is not free then, the contract becomes voidable contract.

• Illegal contract − The law forbids it to be made for a contract.

• Unenforceable contract − If both the parties cannot sue on contract due to technical reasons, it is an unenforceable contract.

Formation

• Express contract− The terms are expressed in writing in an express contract.

• Implied contract − If a contract comes into existence due to implications, it is an implied contract.

• Quasi contract − If a contract resembles a contract, then it is a quasi-contract.

• E.com. contract − If the parties enter into a contract using E-commerce, it is an E.com. contract.

Performance

• Execute contracts − Forbearance is brought on record.

• Executor contract − The contracts which are performed in future. There are two types of executor contracts which are as follows −

  • Unilateral contract− It is a one-sided contract. One party performs their duty and the other is outstanding.

  • Bilateral contract− The obligations and outstanding are on both the parties.