Types Of Contracts in India


There are four types of contracts:-

  1. On the basis of creation
  2. On the basis of validity
  3. On the basis of execution
  4. On the basis of liability



  • Express contract:- A contract made by the word spoken or written. According to Sec. 9 in so far as the proposal or acceptance of any promise is made words, the promise is said to be express.

Example – A says to B ‘ will you purchase my bike for Rs. 20,000?’’ B says to A ‘’yes’’.

  • Implied contract: A contract inferred by
  • The contract of a person or
  • The circumstance of the case.

By implied contract means implied by law _(i.e.,) the law implied a contract through parties never intended. According to sec. 9 in so far as such proposed or acceptance is made otherwise than in words, the promises are said to be implied.

Example: A stops a taxi by waving his hand and takes his seat. There is an implied contract that A will pay the prescribed fare.


  • Tacit contract:- A contract is said to be tacit when it has to be inferred from the conduct of the parties.

Example- obtaining cash through automatic teller machine, sale by fall hammer of an auction sale.

  • Quasi-contracts are contracts which are created:-

-Neither by the word was spoken

-Nor written

-Nor by the conduct of the parties.

-But these are created by the law.

Example- If Mr A leaves his good at Mr B’s shop by mistake, then it is for Mr B to return the goods or to compensate the price. In fact, these contracts depend on the principle that nobody will be allowed to become rich at the expenses of the other.

  • E-contracts:- An e-contract is one, which is entered into between two parties via the internet.

  • Valid contracts:- An agreement which satisfies all the requirements prescribed by law on the basis of creation.

 ( According to sec. 10)

  • Void contracts: The word ‘void’ means ‘not binding in law’. Accordingly, the term ‘void contract’ implies a useless contract that has no legal effect at all. a contract which ceases to be enforceable by law because void, when of, ceased to be enforceable. (Acc. Section 2 (j)).
  • Voidable contracts: According to section 2 (i)  “an agreement, which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other of others, is a voidable contract.” Thus, a voidable contract is one that is enforceable by law at the option of one of the parties. Until it is avoided it is a valid contract.
  • Unenforceable contracts: where a contract is good in substance but because of some technical defect i.e., absence in writing barred by imitation etc one or both the parties cannot sue upon but is described as an unenforceable contract.

Example-Writing registration or stamping.

  • Illegal contracts: It is a contract which the law forbids to be made. All illegal agreement is void but all void agreement or contracts are not necessarily illegal.

A contract that is immoral or opposed to public policy is illegal in nature.

  • Unlike the illegal agreement, there is no punishment for the parties to avoid agreement.
  • The illegal agreement is void from the very beginning but sometimes valid contracts may subsequently become void.

  • Executed contracts: A contract in which both the parties have fulfilled their obligations under the contract.

Example- A contract to buy a car from B by paying cash, B instantly delivers his cart.

  • Executory contracts: A contract in which both the parties have still to fulfil their obligations.

Example- D agrees to buy V’s cycle by promising to pay cash on 15th July. V agrees to deliver the cycle on  20th July.

  • Partly executed and partly executor: A contract in which one of the parties has fulfilled his obligation but the other party is yet to fulfil his obligation.

Example-  A sells his car to B and A has delivered the car but B is yet to pay the price. For A, it is executed contract whereas it is executor contract on the part of B since the price is yet to be paid.


  • Bilateral contracts: A contract in which both the parties commit to performing their respective promises is called a bilateral contract.

Example- A offers to sell his fiat car to B for Rs. 1,00,000 on acceptance of A’s offer by B, there is a promise by A to sell the car and there is a promise by B  to purchase the car there are two promises.

  • Unilateral contracts: A unilateral contract is a one-sided contract in which only one party has to perform his promises or obligation party has to perform his promise or obligation to do or forbear.

Example: A wants to get his room painted. He offers Rs. 500 to B for this purpose B says to A “if I have spare time next Sunday I will paint your room”. There is a promise by A to pay Rs. 500 to B. If B is able to spare time to paint A’s room. However, there is no promise by B to paint the house. There is only one promise.


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