1. Based on Creation
- Express Contract (Section 9):An express contract deals with a contract which is either made by spoken words or a written document. Example- A customer buying a flat from a broker with a written document.
- Implied Contract (Section 9):An implied contract deals with a contract which is made in any way other than a verbal agreement or a written record and rather is inferred from the conduct of a person. Example– A bus shuttle service from the state government plies in a city, to use its service you have to buy a ticket and the shuttle service isn’t exclusively operating for you.
- Tacit Contract: A tacit contract deals with a contract which implies that it is made in silence because there is an understanding that there is no contradiction or objection from the circumstances. Example: Withdrawing cash from an ATM machine.
2. Based on Execution
- Executed Contract: This is a contract signed between two parties who have performed their legal obligations under the contract. Example- A person selling his car to another person saying the car is for sale for a sum of 5 lakh rupees and the same being obligated.
- Executory Contract: This is a contract signed between two parties who are yet to perform their legal obligations under the contract. Example- A person offers his bike for 1 lakh rupees and another person accepts the offer, but the bike is yet to be delivered and the amount for it is also yet to be paid.
- Partly Executed Contract: This is a contract signed between two parties where one of the mentioned parties is yet to perform a legal commitment whereas the other party has satisfactorily completed the legal obligation as per the contract. Example- A salesperson sells a flat to a customer but handing over of the keys to the new flat takes a month’s time.
3. Based on Enforceability
- Valid Contract (Section 2(h)):An agreement which duly follows the laws prescribed by any Court of law is said to be a Valid contract.
- Void Contract (Section 2(j)):At the time of contracting, the contract was valid but in due course of time, the contract becomes void due to several reasons like a change of law or a subsequent amendment to it, performance degradation and other unforeseeable circumstances.
- Void Agreement (Section 2(g)):If an agreement isn’t enforceable by law, then such type of an agreement is said to be void. Example- An agreement made with a minor or a person of unsound mind or a drunkard is considered to be void.
- Voidable Contract (Section 2(i)):A contract that is valid but that can be declared invalid at the request of one of the parties because of a defect or illegality in making it. For example, if one party made a fraudulent misrepresentation on which the other party relied in making the contract, the contract will be enforced against the misrepresenting party, but the other party may seek relief by electing to void the contract.
- Illegal Agreement: Illegal agreements are void from the very beginning because the agreement made cannot be enforced by any law. Example- Contract for murdering someone is void from the very beginning.
4. Based on Duration
- Full-time and Part-time Contracts: A full-time contract usually involves 40 hours of work per week and it may go up to a maximum of 60 hours per week. A part-time contract generally hovers around the 30-hour mark per week. Example- Salaried professionals like engineers are full-time employees and delivery boys can be employed on a part-time basis.
- Fixed-term Contracts: A fixed-term contract is set for a stipulated period within which the set task must be accomplished. Example- Construction workers were given a task to finish a building project within 6 months.