Contracts are documents which are used to bind two or more parties or entities by a set of terms and conditions. These documents are used in many spheres of life and are extremely useful for most organisations and individuals. Contracts safeguard a person’s or a party’s interest and makes him reassured of the fact that he shall be protected against damage or termination of contract by unwanted means.
There are many different types and kinds of contracts available. The following are a few categories of the same:
Contracts are classified into many types. The following is the contract type on the basis of creation.
- Express contract: Express contract is one where promise is made wither by written or spoken words.
- Implied contract: This kind of a contract is not made by written or spoken words; instead it is understood by the conduct of a person or his behaviour.
- Quasi contract: A contract where none of the parties are interested in forming a contract but the law demands them to do so.
Contracts which are divided on the basis of execution:
- Executed contract: A contract type in which both the involved parties have fulfilled their obligations and duties which were under the contract.
- Executory contract: It is a contract in which the parties are still to fulfil the duties entrusted upon them.
Contract on the basis of enforceability:
- Valid contract: A contract which is in complete accordance with the law of the state is called a valid contract
- Void contract: a contract which becomes valid when it is entered into but otherwise it is impossible to perform.
- Illegal contract: A Contract which is unlawful and goes against the state laws.
- Unenforceable contract: is a contract which is valid but cannot be enforced due to some difficulty or defect.