Types of Contracts (valid void) or kinds of Contracts. Video Lecture - B Com

Ans. There are several types of contracts, including: - Express Contracts: These contracts are formed when the parties involved explicitly state their agreement in clear terms, either orally or in writing. - Implied Contracts: These contracts are not explicitly stated but are implied by the actions or conduct of the parties involved. They arise when it is reasonable to assume that an agreement has been made based on the actions of the parties. - Unilateral Contracts: In this type of contract, one party makes a promise in exchange for a specific action or performance from the other party. The contract is formed when the action or performance is completed. - Bilateral Contracts: These contracts involve mutual promises between the parties. Each party makes a promise to the other, and both parties are obligated to fulfill their promises. - Executed Contracts: These contracts are fully performed by both parties, and all obligations have been fulfilled.

Ans. A valid contract is one that meets all the essential elements required for a contract to be enforceable. These elements include offer and acceptance, consideration, legal capacity, and legality of purpose. A valid contract is legally binding and enforceable by law. On the other hand, a void contract is one that lacks one or more essential elements and is therefore not legally binding from the beginning. A void contract is considered as if it never existed, and neither party can enforce its terms. Examples of void contracts include contracts involving illegal activities or contracts entered into by a person lacking legal capacity.

Ans. No, a void contract cannot be ratified and become valid. A void contract is invalid from the beginning due to the absence of one or more essential elements. Since it lacks legal enforceability, it cannot be ratified or validated at a later stage. If the parties still wish to enter into a valid contract, they would need to create a new agreement that complies with all the necessary legal requirements.

Ans. Yes, there are some exceptions to the rule that a void contract cannot be enforced. One such exception is the concept of "restitution." Restitution allows a party who has conferred a benefit under a void contract to recover the value of that benefit from the other party. For example, if Person A pays Person B for an illegal activity under a void contract, Person A can seek restitution to recover the amount paid. However, the purpose of restitution is not to enforce the void contract but to prevent unjust enrichment.

Ans. If a contract is partially void and partially valid, the valid portions of the contract can still be enforced. The void portions, however, will be considered unenforceable. In such cases, the court will attempt to sever the void parts of the contract and enforce the remaining valid portions, as long as the contract can still be reasonably performed without the void parts. The court's goal is to uphold the parties' intentions to the extent possible while respecting the law and public policy.