19030431 classification of contracts

7/28/2019 19030431 Classification of Contracts

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CLASSIFICATION / KINDS OFCONTRACT

On the basis of :1. Enforceability

2. Mode of creation

3. Extent of execution

4. English law


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VOID AGREEMENT

Sec.2(g) : an agreement not enforceable by

law is said to be void Void ab-initio

Absence of one or more essential elements

of valid contract but free consent

Agreements expressly declared void


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Obligation

Sec.65 calls forrestitution of benefits received

from void contract


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When ?

Restitution is allowed in the following

circumstances1.Agreement caused by bilateral mistake of

essential facts

2.Minor committing fraud by misrepresenting

his age

3.In case of valid contracts


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Unenforceable contract

Which cannot be enforced in the court of law

because of :a) Technical Defects: Absence of writing

b) The remedy has been barred by Lapse of

Time

*in the event of repudiation of such contract, the aggrieved party wil not be entitled to legal remedies


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Illegal agreements

Which transgress some rules of basic publicpolicy

Is forbidden by law

Criminal in nature

Fraudulent

Immoral Involves or implies injury to the person or

property of another


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CASE

My dear friend Vijay borrows Rs.50000 from

Anil and enters into a agreement withLashkar e Taiba to import 20 A K -47

Anil knows the purpose of loan .

Later Vijay refused to pay the money . What

can Anil do !!!!


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An illegal agreement even ta intsthe col lateralagreementswith illegality .


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Classification according to

Formation/Mode of Creation

EXPRESSED QUASIIMPLIED


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EXPRESS CONTRACT

If the terms of the contract are expressly

agreed upon (whether by words spoken orwritten )at the time of formation of contract

Sec(9):where the offer and acceptance of any

promise is made in words,the promise is said

to be express.


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IMPLIED CONTRACT

SEC(9):where the proposal or acceptance of

any promise is made otherwise than inwords, the promise is said to be implied

An implied contract is one which is inferred

from the actsorconducts of the par t iesorcourse of deal ings between them


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Getting into bus

Takes a meal in the restaurant Coolie


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Quasi/constructive Contract

These contracts does no t ar iseby the virtue of any agreement,Expressed or implied between the parties but the law infersorrecogn izes a contractundercertain special circumstances

It is th e con tract created by law

It imposes a legal obl igat ion on a party who is required toper form i t .

A person should not be allowed to enrich himself unjustlyat the expenses of another.


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CASE:1

Mr.Sabhilash a big businessman in vizag

,supplies goods to his customer Mr.Adi...whoconsumes them..

Will Adi pay for the goods ?


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Case2:

In the above case Sabhilashs partner Mr.Raju

delivers the goods to Mr.Ravi mistaking Ravifor Adi

Do ravi need to pay for the goods consumed?


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Classification according to

Performance /Extent of execution

EXECUTED EXECUTORY

CONTRACT


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EXECUTED CONTRACT

Contract where both the parties have

completely performed their respectiveObligations


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CASE

Gabbar singh is a renowned dacoit in

Prakasham dist.govt has announced a cashprize of Rs.50,000 to a person who catches

him live of dead . Mr.Rambabu a brave man

catches Gabbar singh and hands him over to

police .

Is the contract said to be executed ?


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EXECUTORY CONTRACT

Contract in which both the obligations are

Outstanding.


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Partly executed and Partly executory


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Unilateral Bilateral

Contract


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UNILATERAL CONTRACT

Contract where only one obligation remains

outstanding, the other obligation havingbeing performed at the time of or before the

formation of the contract


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Bilateral Contract

At the time of formation of contract the

obligation on the part of both the parties to

the contract are outstanding


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CLASSIFICATION OF CONTRACT IN

ENGLISH LAW

FORMAL

CONTRACT

SIMPLE


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CONTRACTS OF RECORDS

FORMALCONTRACT

CONTRACTS UNDER SEAL


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Contracts of Records

A contract of record is either a judgment of

court or Recognizance


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Recognisance:

It is a written acknowledgement of debt due

to the Crown.It is usually met with in

connection with criminal proceedings


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Contracts of records derive their binding

force from the authority of the court. They

lack the essential element consensus.

They are enforced by court


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Contracts Under seal

It derives its binding force from its form alone.

It is in writing and is signed,sealed anddelivered by the parties. It is also called as

deed or specialty contracts.


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Contracts under seal

Contracts which must be made under seal , includes

1. Contracts made without consideration

2. Contract made by corporations

3. Conveyance in legal estate of land or any interest

in land ,including leases of land for more than 3

years .

4. A transfer of a british ship or any share therein


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Simple contracts

All contracts which are not made under seal

are simple contracts

All contracts under Indian law must be

supported by consideration


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OFFER AND ACCEPTANCE

Offer : definite

Acceptance : unconditional


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What ?

Sec2(a):A person is said to have made a

proposal when he signifies to another his

willingness to do or to abstain from doing

anything, with a view to obtaining his assent

of that other to such act or abstinence.


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Sec2(c):when the offeree accepts the offer, he is calledthe acceptor or Promisee

.


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HOW?

1.EXPRESS

2.IMPLIED3.SPECIFIC

4.GENERAL


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EXPESS OFFER

My Dear intelligent students ..I DONT

BELIVE IN REPEATINGPLEASE USE

YOUR BRAIN AND ANSWER


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IMPLIED OFFER

My Dear intelligent students ..I DONT

BELIVE IN REPEATINGPLEASE USE

YOUR BRAIN AND ANSWER

ALSO GIVE EXAMPLES


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SPECIFIC OFFER:

Offer made to a definite person, it can be

accepted only by that person to whome it is

made


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GENERAL OFFER

When the offer is made to the world at large.

Ex: Sach ka samna

Ex: Information about thief's

Ex: finding lost goods/things

*acceptance can be made only by the first person who gives the information


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What constitutes an offer

1. Intention to be bound by it

2. View to obtain the assent of offeree3. Definiteness

4. Communication to offeree


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Legal rules as to offer

A valid offer must be in conformity with the

following rules:

1.An offer must be express or implied


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Implied or Express

1.A says to B that he is willing to sell his house

to him for Rs.50000

2.APSRTC runs different buses in different

routs

3.A shoe shiner starts to shine some ones

shoes without being asked to do so


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2.An offer must contemplate to give rise to

legal consequences and be capable of

creating legal relationship


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Valid offer or not

A promised to his wife that he will take her to

a movie every Friday

B invited his friend C for dinner

A offers to sell his mobile(6600) to C for

Rs.5000.


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3.The terms of offer must be definite,

unambiguous and certain and not loose and

vague.


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case

1. A an owner of 3 cars says to B, I will sell

you my car.

2. B says to C that sell me your Car I will give

you amount that I can afford.

3. X purchased a horse from y and promised

to buy another if the first one proves lucky.


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An invitation to offer is not an offer

19030431 classification of contracts

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