Kinds Of Contract
Learn about kinds of contract. A contract is an agreement entered voluntarily between two or persons which might have legal obligation between or among the parties. There are different kinds of contract, including void contract, voidable contract, unenforceable contract, executed contract, executor contract, express contract, implied contract, quassi- contract, contingent contract, specialty contract, and statutory contracts. These kinds of contract will be explained below:
1. Voidable contracts: These kinds of contract are voidable when the consent of one or more parties is not fully represented. If one of the parties in the contract doesn’t exercise his free consent, the contract can be voidable. This is because one of the most important aspects of forming a contract is the presence of free consent. When this is absent due to a misrepresentation, fraud, or coercion, the affected person whose consent has been misrepresented can render the contract void. This means that the contract will not be binding on that party.
2. Void Contracts: These kinds of contract remain void from inception when they are not enforceable by law. No right is accrued under this form of contract. However, a contract can be valid from inception but later becomes null and void as a result of change in circumstances or events. Most people usually refer this as a void agreement because a contract that is void is no longer a contract. So the normal expression should not be void contract, but rather void agreement.
3. Unenforceable Contracts: This contract, even though a valid contract, is rendered unenforceable if it can’t be enforced in the law court.
4. Executed Contract: These kinds of contract are termed executed contract when there have been a completed obligation by one party even though the other party has not performed his own obligation in the contact.
5. Executory Contracts: A contract is termed an executor contract when neither of the parties have performed their obligations in the contract. The contract will still remain valid even though the both parties have not performed their obligations in the contract.
6. Express Contracts: These kinds of contract are considered express when the contract terms are reduced and agreed upon either orally or in writing.
7. Implied Contracts: When the acceptance of a promise or a proposal is made not in words but in other forms, then the promise or proposal is implied. Such implied proposal can become an implied contract.
8. Contingent Contracts: these kinds of contracts are conditional in nature. A promise is made upon which its fulfillment depends on the occurrence of unforeseen events in the future. For instance, there is a contingent contract when ‘A’ Agrees to pay ‘B’ $4,000 in the event of a damage to B’s house as a result of a fire incident. This is normally seen between a policy holder and an insurance company.
9. Specialty Contracts: These are contracts normally signed and delivered by all parties involved. It is equally regarded as a sealed contract and does not require consideration.
There are other kinds of contract because the above is not an exhaustive list. Also, a contract can have a features of a combination of two or more contracts.