Types of contract

Types of contract

1. Types of contract NAME :M.VASANTHA KUMAR CLASS : II B.COM ‘B’ ROLL NO : 18UR51 SUBJECT : BUSINESS LAW

2. ON THE BASIC OF VALIDITY VALID CONTRACT An agreement enforceable by law when all the essential features of valid contract are present. 2.VOID CONTRACT A void contract is the contract that has no legal effect at all. “A contract which ceases to be enforceable by law becomes void, when it ceases to be enforceable by law”

3. Voidable contract A contract becomes voidable when the consent is not free. Usually a contract becomes voidable when the contract of one of the parties to the contract is not free. Eg -A, THREATENS TO shoot B if he does not sell his bike to A. B agrees. This contract is voidable at the option of B.

4. On the basis of formation 1.EXPRESS CONTRACT CONTRACT formed with words spoken or written, is an express contract. Eg - A tells B on phone that he wants to buy his car for 8000 and B accepts the offer on phone, this is an express contract

5. 2. IMPLIED CONTRACT When the offer and acceptance is made by acts or conducts of the parties, its is an implied contract. For Eg - A, A COOLID IN UNIFORM takes up the luggage of B at railway station and B allows him to do so, then the services of A. This is an implied connttract .

6. 3. QUASI CONTRACT Quasi contract doesn’t arise by virtue of any agreement, but the law infers or recognises these contracts under special circumstance. for eg - claims for necessaries supplied to an incapable person.

7. ON THE BASIS OF EXECUTION EXECTED CONTRACT A contract is said to be executed contract when both the parties to a contract have performed their obligation. for eg - when a bookseller sells a book on cash payment, it is an executed contract because both the parties have done what they were to do in a contract.

8. EXECUTORY CONTRACT WHEN Either both the parties to a contract have still perform their share of obligation, then it is executory contract. for eg A buys a car from B for Rs 10000 now, A has made the payment but B has not transferred the contract, it is an executory contract as the parties have to meet the obligation.

9. Thank you