Kinds of Contracts

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Business law
2nd term report

7/24/2011
Raja Haseeb Amjad

LETTER OF TRANSMITTAL
July 24, 2011
Institute of Business Management,
IoBM.

Mr, Muhammad Ali,
Course instructor Business Law,
IoBM.

Sir,
Here is the report you asked me to prepare during the 1st portion of the business law course that is based on the study conducted up till date. The report is ready for your perusal. For any query do contact.

Sincerely,

Raja Haseeb Amjad
(2007-1-10-7981)

Acknowledgement

I would like to thank Mr. Muhammad Ali for his support in making me understand the course so thoroughly and making it interesting along with it.

Contents
Kinds Of Contracts5
According to Enforceability5
Valid contracts6
Voidable contracts7
Void Contracts7
Unenforceable Contracts8
Illegal Contracts8
According to Formation8
Express Contract8
Implied Contract8
Constructive or Quasi Contract9
According to Performance9
Executed Contract9
Executary Contract9
Discharge of Contract10
Discharge by Performance10
Discharge by Agreement11
Novation11
Alternation11
Recission11
Remission11
Waiver11
Discharge by Subsequent Impossiblity12
Discharge by lapse of Time12
Discharge by Operation of Law12
Discharge by breach of Contract12
Indemnity and Guarantee14
Indemnity14
Guarantee15
Kinds of Gurantee16
Rights of Surety16

Kinds Of Contracts

Contracts are the assential part of getting the work done under the law. If the agreement is not turned in to a contract then for the porposes of implementation the law cannot play its role. As per we very clearly know that all contracts are to be considered as agreements for with out a agreement a contract cannot come in to formation but that all agreements are not contracts for they are either not eligible under the court of law as per the Contract act 1872. It is very important at the time of getting in to a contract the parties should respectively inquire about each others potential and back grounds for if any clause as per the promeisers age and mental conditions can effect the conditions of the contract at the time of implementation. For Example The promiser or the promisee should not be a minor such that under the age of 18 and that at the time of contract should be in full sences and should not be intoxicated or any related things and that the mental condition of the parties should be stable too. For violation of any of the above mentioned points can turn out to make a contract viode. It is also important to keep in mind that at the time of the agreement the formost thing that comes is the PROPSAL made by one party and it depends on the other party to accept the offer made. This is how on which mile stone the steps for the contract are followed resulting in to a contract. Contracts are of basically 3 different groups in terms of there accordance, these are 1. According to enforceability

2. According to formation
3. According to performance
For contracts the way they are to be followed and abide by are given in different sections which will be told as carried on. According to Enforceability

Enforcement is the main thing and a surity to both the parties that what ever happens even if one of the party moves back the law will help the effected party in terms of compensation or what so ever terms be required for the parties in term of the panelty. Enforceability is further more dvided in to different catagories 1. Valid contracts

2. Voidable contracts
3. Void contracts
4. Unenforceable contracts
5. Illegal contracts
These five catagories are mainly described in the law to specify the terms in which the contract can be applicable and can seek the backing of the law. Valid contracts
In the valid contracts there are certain specifications that need to be followed as prescribed in Section 10 of the contract act stating: “All agrrements are contracts, if they are made by a free...
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