Types of Contracts On the basis of Validity On this base Contracts can be classified into 5 groups. The action also must not violate the law or the contract is void. Other required contract elements, including the capacity to contract and the legality of the contract, forbid any contracts made by people without the legal party to commit to the action. valid contract, void contract, illegal contract, etc. Similarly, the contract will be void if the buyer makes a contract to buy something that in fact already belongs to him. A contract that is based on fraud is void or voidable, because fraud prevents a meeting of the minds of the parties. For example, you sign to buy a blue house, and the house is blue; thus the contract is valid. While a signed and dated contract is legally binding, and cannot be simply broken, you may be able to void one by following several steps. A breach of contract will make the whole contract void and can lead to damages being awarded against the party which is in brech. A valid contract requires one party to make an offer and the other party to accept. Types of Illegality in Contract Law Void contract and voiadable contract are quite commonly miscontrued, but they are different. A valid contract is a written or expressed agreement between two parties to provide a product or service. A void agreement is not enforceable at the option of either party. (b) Void Contract : Section 2(j) of the Indian Contract Act, 1872, “A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable.” In other words, a void contract is a contract which was valid when entered into but which subsequently became void due to impossibility of performance, change of law or some other reason. A contract is a written agreement between two or more parties and is designed to show a legal meeting of the minds. I. Legal remedies may well be out of reach of one or more the contracting parties. Moreover, void forms are utilized […] namely Valid, Void, Voidable, Illegal and Unenforceable Contracts. A void contract was once a valid contract, but it has become void now due to changes in some of the original conditions. A contract will not generally be void for mistake if it relates to the quality of the subject matter, as this is unlikely to render performance fundamentally different to that originally agreed. To be valid, the contract has to have specific features including certainty, fulfillment of formalities, legal obligations, capacity of parties, and the like. (a) Valid contract:-An agreement which satisfies all the requirements prescribed by law . Let us take a look. • A valid contract becomes void under the following circumstances: Destruction of subject matter Contract becoming unlawful Death of parties Parties becoming unlawful 16. A void contract is of no effect and cannot be rectified by consent. A contract is legally enforceable because it meets the requirements and approval of the law. Valid Contract: An agreement which is enforceable by law, is a valid contract. Thus Void Contracts can be of following two types :-(i) Void ab initio :-void-ab-initio i.e. 1. VOID CONTRACT Void contract is defined by Section 2(j) viz., a contract which is legally enforceable when entered but become void due to supervening impossibility of performance. The Indian Contract Act 1872 defines a void agreement as “an agreement that is not enforceable by law”. They also offer a temporary support formwork for recently poured concrete till it achieves adequate strength to support its loads. If the fraud is in the factum, (i.e., during the execution of the contract) so that the party would not have signed the document if he or she understood its nature, then the contract is void ab initio (i.e., from its inception). Types of Contract. A contract that is "void" cannot be enforced by either party., The law treats a void contract as if it had never been formed. Example: there is a Contract between P and Q where Q is a minor who has no capacity to contract. Void contracts are basically those which contravene a provision in a statute or are contrary to public policy at common law but to which the ex turpi causa principle does not apply. A void able contract is one which can be avoided and satisfied by some of the parties to it. Valid: The Contracts which are enforceable in a court of law are called Valid Contracts. A contract is a legally binding document between at least two parties that defines and governs the rights and duties of the parties to an agreement. And there can be many times of void agreements, some of which we have covered in the previous articles. Valid and Void Contracts. 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