Question

Explain the classification of Contract on the basis of the Validity

Answer 1

1. Valid Contract: An agreement that fulfills all the essentials prescribed by law on the basis of its creation. For example, S offers to sell his car for Rs.2,00,000 to T. T agrees to buy it. It is a Valid Contract.

2. Void Contract 2(j): A contract that ceases to be enforceable by law. A contract that does not satisfy any of the essential elements of a valid contract is said to be Void.

3. Voidable Contract 2(i): An agreement that is enforceable by law at the option of one or more parties but not at the option of the other or others is a voidable contract.

4. Illegal Contract: It is a contract that is forbidden by law. All illegal agreements are Void but all void agreements or contracts are not necessarily illegal. A contract that is immoral or opposed to public policy is illegal in nature.

5. Unenforceable Contract: Where a contract is unenforceable because of some technical defect i.e. absence in writing barred by imitation etc. If the parties perform the contract it will be valid, but the court will not compel them if they do not.