1

Kinds of Contracts (Sec. 68 to 72)

Classification of Contract


Enforceability


Mode of Creation


Extent of Execution


Implied Cont.


Express Contr.

Valid Void Illegal Unenforceable
Executory Executed
2
1. Classification of Contract on the basis of Enforceability:
a. Valid Contract:
An agreement which has all the essential elements of a contract is called
a valid contract. A valid contract can be enforced by law.
b. Void Contract:
A void contract is a contract which ceases to be enforceable by law .An
agreement may be enforceable at the time when it was made
but later on, due to certain reason, it become void and
unenforceable by law.
c. Illegal Contract:
A contract is illegal if it is forbidden by law; or is of such nature that, if
permitted, would defeat the provisions of any law or is fraudulent . All
illegal agreement are void but all void agreement are not
necessarily illegal.
e.g. An agreement with minor is void but not illegal.
d. Unenforceable Contract:
Certain contract become void because the law court will not
enforce them due to not fulfillment of certain formalities.


3
2. Classification of Contract on the basis of Mode of Creation
a. Expressed Contract:
Where the terms of the contract are expressly agreed upon in words
(written or spoken) at the time of formation, the contract is said to be
expressed contract.
b. Implied Contract:
Contract which come into being on account of the act of the
parties and not by their express words, written or spoken.
3. Classification of Contract on the basis of Extent of
Execution
a. Executed Contract
Where both the parties to the contract have fulfilled their
respective obligation, the contract said to be executed.
b. Executory Contract
Where one or both the parties to the contact still to perform
certain things in future or under the terms of the contract
something remains to be done, the contract is termed as an
executory contract.

4
Quasi Contracts
QUASI means { somewhat like a }
A quasi contract is created by law. Thus, quasi
contracts are strictly not contracts as there is no
intention of parties to enter into a contract. It is
legal obligation which is imposed on a party who
is required to perform it. A quasi contract is
based on the principle that a person shall not be
allowed to enrich himself at the expense of
another
Right to recover the price of necessities supplied.
[Sec 68]
Payment by an interested person. [Sec 69]
Right to recover for non-gratuitous Act. [Sec 70]
Responsibility of the finder of Goods. [Sec 71]
When money is paid or things are delivered by
mistake or under coercion. [Sec 72]

5
Features of quasi contracts
6