Type of Contract. | based on the validity or Enforceability.

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Type of Contract. | based on the validity or Enforceability.

(A) On the basis of validity :-

(1) Valid Contract :-

Two or more parties form a contract. A contract is valid when it satisfies all conditions required for enforceability by law.

Section2(h) of the Indian Contract Act 1872 given that an agreement enforceable by law is a contract and an agreement becomes a valid contract when all the essential elements of a contract as laid down in section (10) of Indian Contract Act 1872 are fulfilled:-

(a) Mede by the free consent of parties(b) Competent to contract(c) For a lawful Consideration (d) A lawful object

Example…………………

All Notes:- https://highlawgroup.in/index.php/category/lawnotes/

(2) Void Contract :-

Section 2(j) of the Indian Contract Act 1872 describes a void contract as a contract without any legal effect. A contract that ceases to be enforceable by law becomes void when it is no longer enforceable. Section 2(g) of the Indian Contract Act 1872 explains that an agreement not enforceable by law is a void agreement.

If an agreement is void then the contract is void.

Ex:- Contract with a minor Case:- Mhari Bibi Vs. Dharmadas Ghose(1903)
In this case, laid down that a Contract entered into with a minor is void ab-into, because not enforceable.

(3) Voidable Contract:-

Section 2(i) of the Indian Contract Act 1872 defines a voidable contract as: “An agreement which one or more parties can enforce by law at their option, but not at the option of the other party or parties.”

Example: A contract entered into through coercion, undue influence, fraud, misrepresentation, or mistake is voidable.

Example:- A person ‘A’ agrees to pay a sum of Rs. 10,0000 to a person B for an antique chair. This contract would be valid, the only problem is that person B is a minor and can’t legally enter a contract.

(4) Illegal Contract :-

A contract is illegal if it involves doing something that is a criminal act or civil wrong or again the public well-fair.

One cannot recover money paid under illegal contracts.

Example:- If a fireman dealer enters into a contract to sell a gun to a person licensed to hold on the knowledge that he will use it to kill someone, that contract will become illegal.

(5) Unenforceable Contract :-

An enforceable is a contract, which is in all respect, but can not be enforceable in a court of law because of some technical defects and faults such as absence of writing, registration requisite stamp etc.

For example:- A agrees to sell to B 100kgs of rice for 10,000/-. But there was a huge flood in the states and all the rice crops were destroyed. Now, this contract is unenforceable and can not be enforced against either party. https://www.indiacode.nic.in/bitstream/123456789/2187/2/A187209.pdf