Types of Contracts on Different Basis
Types of Contract | Based on Validity, Formation and Performance
A Contract is a legally binding agreement between two or more parties that outlines the terms and conditions governing their mutual rights and obligations. Contracts can be verbal or written, but written contracts are typically preferred as they provide a clearer record of the agreement and are easier to enforce in a court of law. A valid contract typically consists of four essential elements: an offer, acceptance, consideration, and an intention to create legal relations. An offer is a proposal to agree, acceptance is the agreement to the terms of the offer, consideration is something of value exchanged between the parties, and the intention to create legal relations means that the parties must intend for the contract to be legally enforceable.
Meaning of ‘Contract’ as per The Indian Contract Act, 1872
The Indian Contract Act, 1872 defines the term “Contract” under its section 2(h) as “An agreement enforceable by law”. In other words, we can say that a contract is anything that is an agreement and enforceable by the law of the land.
Geeky Takeaways:
- A Contract lays out the terms and conditions that govern the mutual rights and obligations of the parties.
- Contracts have been classified differently on different basis.
- Type of contract based on validity includes; valid contract, void contract, voidable contract, unenforceable contract and illegal market.
- Types of contract based on formation includes; express contract, implied contract and quasi contract.
- Types of contract based on performance includes; executed contract and executory contract.
Table of Content
- Types of Contracts on Different Basis
- I. Types of Contracts Based on Validity
- II. Types of Contracts Based on Formation
- III. Types of Contracts Based on Performance
- Conclusion
- Frequently Asked Questions (FAQs)
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