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 A non-law contract is a contract that is no longer applicable.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.