Making Contract

Meaning : A contract refers to an agreement which is enforceable by law. An agreement consists of an offer and its acceptance. Any agreement which is enforceable by law contains some essential elements.

Definition: According to the Barbri Contracts Review, "A contract is a promise or set of promises, for breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty."

Essential elements of a contract: 

Any contract to be legally enforceable must contain the following elements.

• Intention to create legal relationship
• Lawful objective
• Agreement not expressly declared void
• Offer and acceptance
• Free Consent
• Capacity to contract
• Certainty of performance.
• Lawful consideration
• Legal formalities

Types of Contracts:

Express Contracts: In an expressed contract, the parties entitled to the contract state the terms and conditions either by word of mouth or in writing, during the time of formation of the contract.

Implied Contracts:-Contracts which are implied in fact and contracts implied in law both fall under the purview of implied contracts. But, an original implied contract contains a set of  obligations that arise from a mutual agreement and intention of promise, which is not expressed orally.

Executed Contracts:- An executed contract refers to an agreement in which all the parties entitled to the contract have fulfilled the necessary legal obligations.

Bilateral and Unilateral Contracts: The distinguishing factor between unilateral and bilateral contracts is the performance of the contract .A unilateral contract involves a promise made by only one party in exchange for the performance or non-performance by the other party. A bilateral contract arises from the exchange of mutual, reciprocal promises between two persons that requires the performance by both parties. 

Aleatory Contracts: It refers to a mutual agreement which is enforceable only in the case of happening of an uncertain event or a natural calamity. Both the parties who are entitled to the contract may assume risks. 

Unconscionable Contracts:  Unconscionable contracts  refers to those contracts which are extreme in nature and extremely one-way favors of the party, who stand at a superior end of the bargaining power. It can be deciphered from the term 'unconscionable' which refers to an activity that is not right or reasonable.

Questions:

• What are the different types of contracts available?
• What are the elements of the contract?