Classification of contract
Classification of contract
Contracts can be classified into five broad divisions namely
- The method of formation of a contract
- The time of performance of contract
- The parties of the contract
- The method of formalities of the contract
- The method of legality of the contract
- The method of formation of a contract
Under the method of formation of a contract may be three kinds
- Express contract
- Implied contract
- Quasi contract
Express contract: Express contract is one which expressed in words spoken or written. When such a contract is formal, there is no difficulty in understanding the rights and obligations of the parties.
Implied contract: The condition of an implied contract is to be understood form the acts, the contract of the parties or the course of dealing between them.
Quasi contract: There are certain dealings which are not contracts strictly, though the parties act as if there is a contract. The contract Act specifies the various situations which come within what is called Quasi contract.
- The time of performance of contract
Under the method of the time of performance of contract may be two kinds
- Executed Contract
- Executory Contract
Executed Contract: There are contracts where the parties perform their obligations immediately, as soon as the contract is formed.
Executory Contract: In this contract the obligations of the parties are to be performed at a later time.
- The parties of the contract
Under the method of the parties of the contract may be two kinds
- Bilateral Contract
- Unilateral Contract
Bilateral Contract: There must be at last two parties to the contract. Therefore all contracts are bilateral or multilateral.
Unilateral Contract: In certain contracts one party has to fulfill his obligations where as the other party has already performed his obligations. Such a contract is called unilateral contract.
- The method of formalities of the contract
Under the method of the method of formalities of the contract may be two kinds
- Formal contract
- Informal contract
Formal contract: A formal contract is a contract which is formatted by satisfied all the essentials formalities of a contract.
Informal contract: An informal contract is a contract which is failed to satisfy all or any of the essentials formalities of a contract.
- The method of legality of the contract
Under the method of the method of legality of the contract may be five kinds
- Valid Contract
- Void Agreement
- Void able Contract
- Unenforceable Agreement
- Illegal Agreement
Valid Contract: An agreement which satisfied all the essential of a contract and which is enforceable through the court is called valid contract.
Void Agreement: An agreement which is failed to satisfied all or any of the essential element of a contract and which is not enforceable by the court is called void agreement. An agreement not enforceable by law is said to be void. A void agreement has no legal fact. It confers no right on any person and created no obligation.
Example: An agreement made by a minor.
Voidable Contract: An agreement which is enforceable by law at the open of one or more parties of the contract but not at the open of the other or others is a void able contract.
A void able contract is one which can be avoided and satisfied by some of the parties to it. Until it is avoided, it is a good contract.
Example: contracts brought about by coercion or undue influence or misrepresentation or fraud.
Unenforceable Agreement: An Unenforceable Agreement is one which cannot be enforcing in a court for its technical and formal defect.
Example: (1) An agreement required by law to register but not resisted. (2) An agreement with not satisfied stamped.
Illegal Agreement: An illegal agreement is one which is against a law enforcing in Bangladesh.
Example: An agreement to compiled madder.