Contracts | Classification of Contracts

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contract a promise or a set of promises the performance of which the Law recognizes as an obligation and the breach of which the Law provides a remedy.

Definitions of terms

 

Unenforceable contract : contract for the breach of which neither the remedy of damages nor the remedy of specific performance is available;

Bilateral contract or synallagmatic contract: a contract in which the parties have reciprocal obligations;

Unilateral contract: a contract whereby the beneficiary does‟t have any obligation;

Repudiation of contract: informing the  other party in advance that the contractual obligations will not be performed;

Performance: fulfillment of contractual obligations;

Usage: habitual or customary practice;

Usage of trade: habitual or customary practice in a given place and period of time, in a given trade such that its observation is expected with respect to a particular agreement;

Offer: a manifestation of willingness to enter into the contract with another party, made in a manner convincing that party that his/her consent will lead to the formation of the contract;

Clause of a promise or agreement: portion thereof which relates to a particular matter;

Clause of a contract: a portion of the legal relations arising from the promise or set of promises which relates to a particular matter;

Promise: a manifestation by the promisor of an intention to offer, to act or to refrain from acting, that thereby gives the promisee reasonable grounds to believe the promisor is making a commitment to offer, to act or to refrain from acting;

Promisor: a person or entity manifesting the intention to offer, to act or refrain from acting;

Promisee: a person or entity to whom the promise is made;

Third party beneficiary: a person other than the promisee who would benefit from the performance of the promise;

Threat:  harassment, violence or  any  other an act that impedes the free will of a party to a contract, whereby no alternative other than accepting the terms of the contract;

Debtor: a person with the duty to perform a contractual obligation;

Creditor: a person to whom a contractual obligation is owed;

Mistake: a belief that is not in accordance with the facts.

Classification of contracts

 Contracts can be classified into the following categories:

 1 bilateral or synallagmatic contract  and unilateral contract;

 2 explicit contract and implicit contract;

 3 Contract liable to annulment and unenforceable contract;

 4 valid contract and void contract;

 5 formal contract;

 6 gratuitous contract.