There are generally three types of contracts which are as follows:
According to enforceability
According to formation
According to performance
According to enforceability:
According to enforceability a contract can be divided into the following five kinds:
Valid contract: a valid contract is an agreement enforceable by law. An agreement becomes enforceable by law when all the essentials of a valid contract as explained by section 10 are present. If even one is missing there is no valid contract. In valid contact all the parties to the contract are legally responsible for the performance of a contract. If one of the parties breaks the contract the other party has a right to take action against the guilt party. The contract can be enforced through the court also.
A proposes to sell his car to B for rupees 2 lack and B accepts the proposal. If A and B both possess contractual capacity and B's consent is free there is a valid contract between A and B. if A fails to deliver the car B can sue him in the court for delivery and If B fails to make payment. A can sue him for recovery of price. So this is the enforceability of the contract.
According to enforceability
According to formation
According to performance
According to enforceability:
According to enforceability a contract can be divided into the following five kinds:
Valid contract: a valid contract is an agreement enforceable by law. An agreement becomes enforceable by law when all the essentials of a valid contract as explained by section 10 are present. If even one is missing there is no valid contract. In valid contact all the parties to the contract are legally responsible for the performance of a contract. If one of the parties breaks the contract the other party has a right to take action against the guilt party. The contract can be enforced through the court also.
A proposes to sell his car to B for rupees 2 lack and B accepts the proposal. If A and B both possess contractual capacity and B's consent is free there is a valid contract between A and B. if A fails to deliver the car B can sue him in the court for delivery and If B fails to make payment. A can sue him for recovery of price. So this is the enforceability of the contract.