Different Types of Contracts in Business
Different Types of contracts in business
Based on validity:
1. Valid contract: A contract which abides by all the laws of the Indian contract act, 1982 is termed a valid contract which can be imposed by law.
2. Void contract [as under Section 2(j)]: A void contract is an agreement which can’t to be imposed by law.
3. Voidable contract [as under Section 2(i)]: A contract which is imposable by law at the choice of one or more of the concerned parties thereto, but not at the decision of any other individual, is termed as a voidable contract.
4. Illegal contract: An agreement is unlawful if it is banned by law; or is of such character that, if accepted, would beat the requirements of any law or is deceptive; or engages or involves damage to an individual or assets of another, or the law considers it as dissipated or conflicting to civic rules. These contracts are liable to be punished by the law.
5. Unenforceable contract: Where an agreement is good in body but for various practical faults can’t be imposed by law is termed as unenforceable contract.
On the basis of formation:
1. Express contract: Where the periods of the agreement are particularly settled upon in words or in writing at the occasion of creation, the agreement is called an express contract.
2. Implied contract: It is one which is conditional from the conduct or acts of the concerned parties or from the conditions of the cases.
3. Tacit contract: Tacit contracts are a form of implied contract. For example buying train ticket while traveling.
4. Quasi contract: A quasi contract is produced by law. As a result, they are exactingly not contracts as there is no objective of parties to go into any forms of contract. It is lawful compulsion which is forced on a party who is needed to execute it.
On the basis of performance:
1. Executed contract: It is an agreement one in which all the parties’ involved has executes their particular duty.
2. Executory contract: It is one where one or parties to the contract have yet to execute their responsibilities in future. As a result, a contract which is partly executed or completely pending is called executory contract.