Question

Explain the classification of Contract on the basis of the Formation.

Answer 1

1. Express Contract: A contract made by the word spoken or written. According to Section. 9, in so far as the proposal or acceptance of any promise is made in words, the promise is said to be express. For example, P says to Q ‘will you buy my bicycle for Rs. 1,000?” Q says to P “Yes”.

2. Implied Contract: The implied contract is one, which is not expressly written but understood by the conduct of parties. Where the proposal or acceptance of any promise is made otherwise than in words, the promise is said to be implied. For example, A gets into a public bus, there is an implied contract that he will pay the bus fare.

3. Quasi Contract: It is a contract created by law. Actually, there is no contract. It is based on the principle that “a person shall not be allowed to enrich himself unjustly at the expense of the other”. In other words, it is an obligation of one party to another imposed by law independent of an agreement between the parties.

4. Tacit Contract: A contract is said to be tacit when it has to be inferred from the conduct of the parties. For example, obtaining cash through an automatic teller machine, sale by fall of the hammer of an auction sale.