As per the Indian Contract Act, 1872, agreements can be classified into various types based on the nature of the agreement, the parties involved, and the enforceability of the agreement. Here is a brief overview of the different types of agreements under the Indian Contract Act:
1. Express agreements
Express agreements are those where the terms of the agreement are explicitly stated by the parties involved. This can be done verbally or in writing. Express agreements can be further classified into two types – oral or written agreements.
2. Implied agreements
Implied agreements are those where the terms of the agreement are not explicitly stated by the parties involved. Instead, they are inferred from the actions and circumstances surrounding the agreement. For example, if you enter a grocery store and pick up a basket, you are implying that you accept the terms of the store`s policy, although you haven`t explicitly agreed to it.
3. Void agreements
Void agreements are those which are not recognized as enforceable under the law. Such agreements are considered null and void from the beginning. For example, an agreement between two parties to commit a crime or an immoral act is considered void under the Indian Contract Act.
4. Voidable agreements
Voidable agreements are those which are initially enforceable but can be cancelled or voided by one of the parties involved. Such agreements are valid until they are voided by the party who has the right to do so. For example, a minor signing a contract is a voidable agreement, as the minor has the legal right to void the agreement.
5. Contingent agreements
Contingent agreements are those which depend on a certain condition to be fulfilled before they become enforceable. For example, a contract to sell a car is contingent upon the car passing a mechanical inspection.
6. Wagering agreements
Wagering agreements are those where the parties involved bet on the outcome of a certain event. Such agreements are not enforceable under the Indian Contract Act, as they are considered to be based on luck rather than mutual benefit.
In conclusion, understanding the different types of agreements under the Indian Contract Act is essential for anyone entering into a contract or agreement in India. It is important to distinguish between the different types of agreements so as to ensure that your rights are protected and the agreement is enforceable under the law.