Classification of Contracts

Agreement Vs. Contract

Meaning One in another

Essentials
Enforceability Rights

According to Validity/ Enforceability

Voidable contract Void contract & Void agreement Illegal agreement Unenforceable contract

Voidable Contract (Sec. 2 (i)))

Free consent is missing When a person promises to do something for a consideration and the other party to contract prevents him from performing his promise. Failure to perform the contract within fixed time. Remedies available

Void Agreement Vs Void Contract

Meaning Status at the time of formation

Restitution
Legal Obligations

Void Agreement Vs Voidable Contract

Legal Effects Curability

Collateral Transactions
Valid Title to Third Party Compensation on account of non-performance

Illegal Agreement
Transgresses some rule of basic public policy Criminal in nature Immoral Collateral transactions

Void Agreement Vs Illegal Agreement

Meaning One in another

Reason
Collateral transactions Punishment Restitution

Unenforceable Contract
Some technical defect

According to Formation
Express contract (Sec 9) Implied contract (Sec 9) Quasi/ Constructive contract

According to Performance
Executed contract Executory contract

Partly executed & partly executory contract

Unilateral contract Bilateral contract

A promises to sell his car to B for Rs. 20,000. His consent is obtained by use of force.

A & B contract that B shall execute certain work for A for Rs. 1,000. B is ready and willing to execute the work accordingly but A prevents him from doing so.

B borrows Rs. 50,000 from A and enters into a contract with an alien to import prohibited goods. A knows the purpose of the loan.

A takes a cup of tea in a restaurant

A fire broke out in Ps farm. He called upon the Upton Fire brigade to put out the fire which the latter did. Ps farm did not come under the free services zone although he believed to be so.

T, a tradesman, leaves goods at Cs house by mistake. C treats the goods as his own.

A agrees to paint the picture for B for Rs. 100. When A paints the picture, B pays the price.

A person buys a bun containing a stone and subsequently breaks one of his teeth.