2. ACCORDING TO FORMATION
On the basis of formation, types of contract is of mainly three types.
• Express Contract.
• Implied Contract.
• Quasi Contract.
3. EXPRESS CONTRACT
• Express contract is one which is expressed in words spoken or written.
• When such a contract is formed, there is no difficulty in understanding the rights,
terms, obligations and conditions of a contract.
Example: “A” gives his house on rent to “B”, on per month Rs. 10000 and for
one year of period, “A” mentioned terms and condition on a paper.
4. IMPLIED CONTRACT
• An implied contract is made without any words spoken and written.
• It arise from acts, conduct of parties, course of dealing or circumstances.
Example: When you arrive at the hair salon for your usual cut, it is expected
that you will pay for the services rendered. This is an implied contract.
5. QUASI CONTRACT
• A quasi contract is an agreement between two parties without previous obligations to
one another that has been created and legally recognized by the court system.
• This contract is arranged and imposed by a judge to correct a circumstance in which
one party acquires something at the expense of the other party.
• For example, Consider a pizza that is delivered to the wrong address. The pizza has
already been paid for. If the individual does not correct the delivery man and instead
keeps the pizza, the court system could issue a quasi contract that would require the
individual to pay back the amount of the pizza to the party that paid for the pizza. The
contract is used to prevent any party from benefiting from the situation at the other
party's expense.
