The Indian Contracts Act is governed by the Indian Contract Act of 1872. However, the Contract Act does not codify the entire law of contracts, the law also expressly preserves any use or use of trade or any incident of a contract that is not inconsistent with the provisions of the law. Contract law is limited to the application of voluntary civil obligations. Contract law is not able to deal with the full range of agreements, many agreements remain outside the jurisdiction because they do not meet the requirement of a contract. A contract is an agreement; An agreement is a promise and a promise is a proposal adopted. Any agreement is therefore the result of a proposal on the one hand and its adoption on the other. A contract is considered a contract if it is legally applicable. Section 10 of the Act deals with the conditions of enforceable force, according to this section, a contract is a contract when it is made for consideration, between the parties who are competent for the contract, with free consent and for a legitimate purpose. 2.
Types of contracts on the basis of its validity: – (i) Valid contract: A contract that has all the essential elements of a contract is referred to as a valid contract. A valid contract can be enforced by law. (ii) Empty Contract [Section 2 (d)] : An agreement that is not applicable by law is considered non-applicable. A non-law contract is a contract that is no longer applicable. A contract initially concluded may be valid and binding for the parties. It can be invalidated later. (iii) Nullity Contract [Section 2 (i): „An agreement legally applicable to the choice of one or more parties, but not to the choice of another or another, is a non-negotiable contract.“ However, the contract remains good and enforceable, unless it is rejected by the aggrieved party. (iv) Illegal contract: a contract is illegal if it is prohibited by law; or is of this type that, if authorized, the provisions of a law not to defeat or is fraudulent; or a violation of one person or property of another, or the court considers it immoral or contrary to public policy. These agreements are punishable. They`re void-ab-initio. All illegal agreements are null and for none, but not all non-legal agreements are illegal. (v) Unworkable contract: if a contract is good on the merits but cannot be invoked by law because of a technical defect, the contract is classified as unenforceable. These contracts are neither null and void.3. Empty expiry contract:-Void contract means that a contract does not exist at all.
The law cannot impose any legal obligation on any of the parties, particularly the disappointed party, because it is not entitled to protection laws as long as they are contracts. An agreement to carry out an illegal act is an example of a nullity or nullity contract. For example, a contract between dealers and buyers is a non-contract, simply because the terms of the contract are illegal. In such a case, neither party can take legal action to enforce the contract. Under Section 2 (g) of the Indian Contract Act of 1872, „an agreement that is not applicable by law is declared null and void“ and, in accordance with Section 2 (j) of the Act, „a contract that is no longer enforceable by law becomes null and void if it is no longer enforceable.“ Thus, Void Contracts can be of two types:–(i) Void ab initio:- void-ab-initio d.c.a. unworkable from the beginning (ii) empty due to the impossibility of its performance:- A contract may also be invalid due to the impossibility of its performance. Z.B.: If a contract is entered into between two parties A-B, but during the execution of the contract, the purpose of the contract (due to the action of someone or other than the contracting parties) cannot be reached, the contract cannot be obtained in court and will therefore be non-sharpened. (iii) No agreement under the provisions of the Indian Contract Act of 1872:– Any agreement with a bilateral error is null and void. (Section 20): – If both parties to an agreement have a mistake, which is actually essential to reach an agreement, the agreement is for example.