1. VALID CONTRACT :Valid contract is that which is enforceable at law.

It
creates legal obligations between the parties. It
enables one party to compel another party to do
something or not to do something.
Parties Obligations :In case of valid contract all the parties to the
contract are legally responsible for the performance
of a contract. If one party breaks the contract other
has right to be enforced through the court.
Example :- Amun proposes sell his one acre land to
Nasir for one lac and the parties are capable to do
the contract by law. So this contract is valid. If Amun
fails to deliver the land Nasir can sue him in the
court for the delivery of land. On other hand Nasir
fails to make the payment, Amun can sue him for
the recovery of payment.

2. VOID CONTRACT :Definition :- "An agreement not enforceable at law is

a void contract".
Originally it is a valid contract but due to certain
reasons it becomes void after its formation. A void
contract cannot be enforced by either party.

Features of Void Contract :a. It is not enforceable by law.

b. It creates no legal rights.
c. It creates no obligations on any party.
d. An agreement which is against the public policy
or against any law is also void.
e. Under this contract no compensation can be paid
to any party.
An agreement in restraint of marriage and trade are
common examples of void contract.
Example :- Sachin and Isha contract to marry on
next Sunday. Isha dies before the Sunday. The
contract becomes void.
Rights and Duties :In this case the parties are not legally responsible to
fulfill the contract. If any party has received any
benefit is bound to return.
This contract takes place when consent of one of the
parties is not free.

3. VOIDABLE CONTRACT :-

"An agreement which is enforceable by law at the

option of one or more of the parties, there to but not
at the option of the other or others is a voidable
contract".
Features of Voidable Contract :a. It is enforceable at law at the option of one or
more of the parties.
b. A voidable contract can only be objected by the
party who has been subject to fraud, coercion,
misrepresentation and undue influence.
c. If the contract is revoked by a person rightfully
then he can also receive the compensation.
d. The contract is voidable at the option of the party
whose consent is caused.
e. Contracts caused by fraud, undue influence,
misrepresentation or by coercion are voidable
contracts.
Example :- Mr. Qadir threatens to shoot Mr. Shah to
purchase a car for one lac. Mr. Shah agrees the
contract was made by coercion and is voidable at
the option of Mr. Shah.
Rights and Duties :The aggrieved party can cancel such contract within
a reasonable time. It is also entitled to be
compensated by the other party.

Burden of Proof :It is the responsibility of the aggrieved party to

prove that her consent was obtained by fraud or
coercion. If it fails to prove in the court then contract
will remain valid.
If the contract is not written or not registered it can
not be enforced. But as you will remove this defect
the contract can be enforced.
Example :- Suppose "A" borrows the money from "B"
and writes a pronote but proper amount stamps are
not posted on the pronote. Now in this case contract
is valid but not enforceable by law.
4. UNENFORCEABLE CONTRACT :Contract is called unenforceable when due to some
technical difficulty or lack of any formality required
by the special provisions of law a valid contract is
not enforced by the court.