CLASSIFICATION OF

CONTRACTS
Prepared by
Ms. S. P. Nisha Pradeepa
Assistant Professor
CLASSIFICATION OF CONTRACTS
 BASIS OF FORMATION

• Express contract – oral or written declaration of intention.

Expressly agreed upon.

Example : Over telephone, suresh agrees to sell his two wheeler

for Rs. 10,000 with all description known and agreed upon.
 BASIS OF FORMATION
• Implied contract – it is one in which evidence of agreement is not shown
by words or written but by acts and conduct of the parties concerned.
Example : Porter and individual
 BASIS OF FORMATION

• Contracts of mixed character – Mix of Express and implied. Offer &

Acceptance – one is expressed and other is implied
Example : sandhya, a garment designer and the actress.
 BASIS OF PERFORMANCE OF
EXECUTION
• Executed contract – When both parties have fulfilled their obligations
under the contract.
 BASIS OF PERFORMANCE OF
EXECUTION
• Executory – When both the parties are yet to perform the obligations
Example: Priyanka offers to sell a car to Akshaya at Rs. 1.5 L. Neither of
them has fulfilled.
 BASIS OF PERFORMANCE OF
EXECUTION
• Partly executed and partly executory contract – name indicates the
meaning
 BASIS OF VALIDITY /
ENFORCEABILITY
• Valid contract – Fulfills all the essential elements prescribed by law
 BASIS OF VALIDITY /
ENFORCEABILITY
• Voidable contract – An agreement which is enforeceable by law in one or
more options but not at the option of other or others.
• Untill the contract is repudiated or set aside by the aggrieved party.
• Aggreived parrty must exercise the option of rejecting the contract within
a reasonable time and before the rights of third party intervene.
• Example: Tried to shoot his father, failing to sell his company.
 BASIS OF VALIDITY /
ENFORCEABILITY
• Void agreement – void-ab-initio
• Example : Every contract in restraint of marriage of any person, other
than a minor is void.
 BASIS OF VALIDITY /
ENFORCEABILITY
• Void contract – is valid when it enters into, but subsequently to its
formation, something happen which makes it unenforceable by law.
 BASIS OF VALIDITY /
ENFORCEABILITY
• Illegal or unlawful contract – a agreement enforceable by law, contrary to
law
• Example - X promises to pay Rs. 2 L for killing Y
 OTHER TYPE
• Unilateral contract – Bus ticket payment vs the transport owner
• Bilateral contract – there is an obligation to be performed by both the
parties
 CONCLUSION

A contract is a contract from the time it is

made and not from the time its performance
is due !
JUST FOR FUN
THANK YOU