Types of Contracts under The Indian Contract Act, 1872

Contracts can be classified into different types based on their validity, formation, and performance. Below are the classifications and explanations:

1. Types Based on Validity

This classification determines whether a contract is legally enforceable.

(a) Valid Contract

A contract that fulfills all the essentials of a valid contract (e.g., offer, acceptance, lawful consideration, free consent, etc.).

It is legally enforceable by the court.

Example: A sells a car to B for ₹5 lakhs, and both parties agree to the terms.

(b) Void Contract (Section 2(j))

A contract that was valid when formed but becomes unenforceable due to certain reasons like impossibility or change of law.

Example: A agrees to deliver goods to B, but the goods are destroyed in a fire before delivery.

(c) Void Agreement (Section 2(g))

An agreement that is not enforceable by law from the very beginning.

Example: An agreement with a minor.

(d) Voidable Contract (Section 2(i))

A contract that is enforceable by law at the option of one party but not the other(s).

It arises due to coercion, undue influence, fraud, or misrepresentation.

Example: A agrees to sell his house to B under duress. A can later void the contract if he wishes.

(e) Illegal Contract

A contract whose object or consideration is illegal or against public policy.

Example: An agreement to smuggle goods is illegal and unenforceable.

(f) Unenforceable Contract

A contract that cannot be enforced due to technical defects, such as lack of proper documentation or lapse of time.

Example: A contract requiring registration but not registered.

2. Types Based on Formation

This classification focuses on how the contract is formed.

(a) Express Contract

A contract in which terms are explicitly stated, either orally or in writing.

Example: A agrees in writing to sell his bike to B for ₹30,000.

(b) Implied Contract

A contract formed through the conduct or actions of the parties, rather than explicit words.

Example: Boarding a public bus implies acceptance of paying the fare.

(c) Quasi-Contract

Not an actual contract but obligations imposed by law to prevent unjust enrichment.

Example: A pays B’s debt mistakenly, and B is obligated to repay A under quasi-contract.

3. Types Based on Performance

This classification deals with the extent to which a contract has been performed.

(a) Executed Contract

A contract where both parties have fully performed their obligations.

Example: A buys a book from B by paying ₹500, and B delivers the book.

(b) Executory Contract

A contract where some or all obligations are yet to be performed.

Example: A agrees to sell his house to B after 30 days for ₹10 lakhs.

(c) Unilateral Contract

A contract where only one party has obligations to perform.

Example: A announces a reward for finding his lost dog. B performs by finding the dog.

(d) Bilateral Contract

A contract where both parties have reciprocal obligations to perform.

Example: A agrees to deliver goods to B, and B agrees to pay upon delivery.

Summary Table

Basis of Classification	Type of Contract	Example
Validity	Valid, Void, Voidable, Illegal, Unenforceable	Agreement with free consent is valid.
Formation	Express, Implied, Quasi	Accepting a taxi ride implies an implied contract.
Performance	Executed, Executory, Unilateral, Bilateral	A delivery contract is executory.

This detailed classification helps understand the nature and enforceability of various contracts under the Indian Contract Act, 1872.