Classification of contracts
Contracts may be classified in terms of their validity, or mode of formation or the extent to which they have been performed and obligation to perform.Broadly, the contracts may be classified into the following.
Classification of Contracts
Validity and Mode of Extent of Obligation
Enforceability Creation Execution to perform
Classification of contracts on the basis of validity and Enforceability :
The contracts on the basis of validity may be classified into three types viz., Valid Contracts, voidable contracts and void contracts.
1. Valid contracts:A valid contract is an agreement enforceable by law.It satisfies all the essential requirements of a valid contract as laid down by sec.10 If one or more of these elements is missing, the contracts is not valid.
Voidable contracts:According to Sec.2(1) " An agreement which is enforceable by law at option of one or more of the parties thereto,but not at the option of the other or others, is avoidable contract.Thus a voidable contract is one which may be repudiated at the will of one of the parties, but until it is so repudiated it remains valid and binding.It is affected by a flat enables the aggrieved party to avoid the contract.If the party having the right avoid the contract does not exercise the right within a reasonable time,the agreement is binding and enforceable.
Voidable contracts:According to Sec.2(1) " An agreement which is enforceable by law at option of one or more of the parties thereto,but not at the option of the other or others, is avoidable contract.Thus a voidable contract is one which may be repudiated at the will of one of the parties, but until it is so repudiated it remains valid and binding.It is affected by a flat enables the aggrieved party to avoid the contract.If the party having the right avoid the contract does not exercise the right within a reasonable time,the agreement is binding and enforceable.
No comments:
Post a Comment