This document provides an overview of various types of contracts including bilateral, unilateral, quasi, executory, void, valid, and voidable contracts. It discusses the essential elements and conditions for contracts to be formed, performed, and discharged. Key points include the definition of different contract types, what makes a contract valid or void, ways for contracts to be discharged including performance, breach, or operation of law, and remedies available for breach of contract.

1. BUSINESS LAW
WEEK NO.3
16-3-2023
MR. IRFAN IQBAL

2. OVERVIEW
• Bilateral
• Unilateral
• Quasi
• Executory
• Void
• Valid
• Voidable contracts
• Agreement Performance
• Discharge of Agreement

3. CONTRACTS
• Bilateral
• Both parties are bound, and parties have yet to
perform their obligations.
• Unilateral Contract
• Only one party is bound but the other party chooses
to be bound by it.
• E.g. Pay prize to a person who finds some lost goods.

4. • Quasi or constructive Contract
• Person shall not allowed to get benefit at the cost of another.
• E.g. return lost goods of others.
• Executory Contract
• A contract under which unperformed obligations remain on
both sides, or where both parties have continuing obligations to
perform. For example, most leases or contracts for the sale of
goods where the goods have not been delivered by the seller
and the buyer has not paid, are executory contracts.

5. CONDITIONS UNDER WHICH
QUASI CONTRACTS ARISE
• There are five conditions under which the obligations
of contract are imposed by law and they are as follows:
• 1).Supplies of Necessaries (section 68)
• 2).Payment due by another (section 69)
• 3). Non-Gratuitous Acts (section 70)
• 4). Finder of goods (section 71)
• 5).Payment under Mistake or Pressure (section 72)

6. VOID CONTRACTS
• An agreement which is not enforceable by law is said
to void. These are the agreements which do not create
legal relation in between the contracting parties. In
the eyes of law void agreements are not actually
agreements and they are void ab-initiao (from the very
beginning ).

7. VOID CONTRACTS
• The agreements which have been declared by law as void
are as follows:
• 1). Mistake of both the parties
• 2). Agreement without consideration(sec 25)
• 3). Unlawful Consideration
• 4). Unlawful Object
• 5). An agreement in restraint of marriage (section 26)
• 6).An agreement in restraint of Trade( sec 27)

8. • 7). Agreement in restraint of legal proceeding(sec 28)
• 8). Agreement involving Uncertainty (section 29)
• 9).Agreement by way of gamble (section 30)
• 10).Agreements to do impossible acts (section 56)
• 11). Agreements made with minor
• 12). Agreement by unsound mind

9. VOIDABLE CONTRACTS
• Contract= Agreement+ Enforceability at the option of
party.
• Consent is not free, fraud, misrepresentation, ,mistake,
undue influence. So under a voidable contract, there
must be at least one party who can enforce the
contract and there is at least one party who cannot
enforce the contract.

10. CONTRACTS DECLARED TO BE
VOIDABLE
• The following are the contracts which have been
declared by law as voidable.
• 1). Contracts caused by pressure
• 2). Contracts caused by undue influence
• 3). Contracts caused by Fraud
• 4). Contract caused by mis-representation
• 5). Contract of unsound mind

11. VALID CONTRACT
• A contract that fulfills all the requirements of the law
and is enforceable by law is a valid contract. Under
such contract if one party fails to perform his share of
obligation , the other party has a right to sue for its
performance.
• Example:
• A offers to sell his bicycle to B for Rs.3000/-it is a valid
contract if it is made with the free consent of the
parties, competent to contract.

12. PERFORMANCE OF CONTRACT
• Section 37 of The Contract Act is relevant to performance
of the contract and says that the parties to a contract
,must either perform, or offer to perform, their respective
promises , unless such performance is dispensed with or
excused under the provisions of this Act, or of any other
law.
• Example: X promises to deliver goods to y on certain day
on payment of Rs.1000.X dies before that day. X’s
representatives are bound to deliver the goods to Y and Y
is bound to pay Rs.1000 to X’s representatives.

13. RULES/ESSENTIALS
• The following are the rules with regard to the
performance of the contract:
• 1.Who can demand performance
• 2.Who can perform contract
• 3.When time for performance is not fixed
• 4.When time is fixed
• 5.When application is required
• 6.When place is not fixed

14. • 7.When place is fixed
• 8.Manner of performance
• 9.Reciprocal promises
• 10.Order of performance of Reciprocal Promises
• 11.When time is essence of the contract

15. DISCHARGE OF CONTRACT
• Discharge of Contract means to get free from the
obligation and rights created by law under a contract.
When two parties enter into an agreement. One party
has to do some thing or to perform an act for the
other party. So the discharge of a contract means to
put to an end all the obligations and rights created by
the contract.
• In short, discharge of contract means to get free from
the duties and obligations imposed by law through a
contract.

16. • Illustration:
• A agrees to sell 1000 units of his product to B for Rs.10
per unit. B pays Rs.10,000 to A and A hands over 1000
units to B. Now both A and B has been discharge from
his part of contract.

17. MODES OF DISCHARGE
• A contract may be discharged by any one of the
following ways.
• 1. By performance
• 2.By mutual consent
• This discharge may be in any one of the following ways:
• a. Novation
• b. Alteration
• C. Rescission

18. • D. Remission (Inflation)
• E. By waiver
• 3. By lapse of time
• 4. By breach of contract
• 5. By operation of law
• A contract may be discharged by operation of law in any
one of the following ways.
• A. By death

19. • B. By unauthorized alteration
• C. By insolvency
• D. By merger
• 6. By impossibility
• 7. Void contract
• 8. Voidable contract

20. BREACH OF CONTRACT
• Breach of contract means the volition by the parties
while performing the contract. When any one of the
contracting parties fails to perform his part of
obligation in a lawful contract, the breach of contract
take place.
• In short, when a party refuses to perform the contract,
it is known as breach of contract.

21. REMEDIES FOR A BREACH OF
CONTRACT
• 1.Rescission of the Contract( sec 75)
• 2.Claim for damage( sec 73)
• A. General damage
• B. Special damage
• 3. Specific performance
• 4. Suit for quantum meruit
• 5. Suit for injunction