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The Contract
Formation of Contracts: To form a
contract the following steps are the basic
steps which are required to follow:
No.1 : A proposal has to be
accepted to be a promise;
No 2: Then the promise is to be
considered to form an agreement;
No. 3: The agreement should have the
enforceability of law to form a lawful
contract
Endure till You Succeed (Tehseen)
4 2/23/2017
The Contract
Scope of a contract:
Types of Contract:
Contracts so far brought into practice
have been classified into different
groups on the basis of different
assessments. The classification of
contract is made depending on certain
modes. The classification made under
certain modes, is not expressly said in
the Contract Act, 1872 .Details of
classification of contract depending on
certain moods are mentioned as under.
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7 2/23/2017
Types of Contract
a. Contracts depending on the mode of
Creation
i. Express contract :The offer and
acceptance of a contract if made in words,
either expressed orally or in written words,
the contract will be considered to be an
expressed one. There are two types of
expressed contract -Written contract& Oral
contract
ii. Implied contract: An
implied(understood, disguised) contract is
formed when the offer and acceptance of a
contract is made without the use of any
words, rather by some other means.
Endure till You Succeed (Tehseen)
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Types of Contract
b. Contracts as regards the mood of time of
performance
i. Executed contract: If the conditions of a contract
are performed as soon as possible, the contract is
said to be a executed contract. On other , the
contract the obligations of which, is already
performed, or to be performed in a very short time
is the executed contract.
ii. Executory contract: In this contract the
obligations of the contract is supposed to be
performed at the later period of the formation of the
contract. There is no limitation of time for the
performance of the contract in this regard. The
contract itself suggests such limitation, unless it is
prescribed by law.
Types of Contract
d. Contracts as regards the mood of enforceability and validity
Types of Contractii
Types of Contractii
Pursuant to the Contract Act, the following
contracts have void abilities:
(a) If any part of a single consideration for one
or more objects or any one or any part of
anyone of several considerations for a single
object is unlawful, the agreement is
void.Section 24
(b) An agreement made without consideration
is void except in the case of those covered by
exceptions.
(c) Every agreement in restrain of the marriage
of any person, other than a minor, is void
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Types of Contract ii
Types of Contract ii
Types of Contractii
i. Where both the parties to an agreement
are under a mistake to a matter of fact
essential to the agreement, the agreement
is void.Section 20
Types of Contract ii
Types of Contractiv
iv. Unenforceable Contract:
An unenforceable contract is one which is
valid in itself but is not capable of being
enforced in a court of law because of some
technical defects such as absent of writing,
registration, requisite stamps etc. or time
barred by the law of limitations. Under Sec. 10
of the Contract Act, "all agreements are
contracts if they are made by the free consent
of parties competent to contract, for a lawful
consideration and with a lawful object, and are
not hereby expressly-declared to be
void". Endure till You Succeed (Tehseen)
19 2/23/2017
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