Fundamentals of Business Laws and Business Communication · Essential Elements of a Contract, Offer and Acceptance

Classification of Contracts: Void, Voidable, Express and Executed

Updated 10 October 2026 · Fact-checked

Classification of contracts means grouping contracts by validity (valid, void, voidable, illegal, unenforceable), by formation (express, implied, quasi), and by performance (executed, executory). To solve questions, spot the key fact in the case, match it to the type, and eliminate options that do not fit.

Understand Classification of Contracts

A contract is an agreement that the law will enforce. Not every contract is the same. Law groups them so that you know what rights each party has. In the exam, you must match a situation to the right label.

By validity or enforceability, think of these kinds. A valid contract has all essentials and can be enforced. A void agreement is void from the start and never becomes a contract. A void contract is a contract that becomes unenforceable later, for example because performance becomes impossible. A voidable contract is enforceable only at the option of one party, usually because that party's consent was not free (coercion, undue influence, fraud, misrepresentation). An illegal agreement is forbidden by law, and the parties may be punished. Illegal agreements are a subset of void agreements: every illegal agreement is void from the start, but a void agreement that is not illegal is simply void. An unenforceable contract is good in substance but cannot be enforced in court because of a technical defect, such as a time limit that has expired or a missing formality. This is a doctrinal category used in teaching. The Indian Contract Act, 1872 does not define it.

By formation a contract is express when terms are stated in words, spoken or written. It is implied when it arises from conduct or circumstances, such as taking a seat in a city bus. A quasi contract is not a real contract. The law creates the duty to prevent unjust gain, for example when money is paid to you by mistake and you must repay it (Section 72).

By performance a contract is executed when both sides have done everything. It is executory when something is still to be done by one or both sides. You may also see unilateral contracts, where only one side has a pending obligation, and bilateral contracts, where both have.

Keep one distinction clear: a void agreement is void from the start and never became a contract (for example, an agreement with a minor, or an agreement without consideration, subject to the exceptions in Section 25). A void contract was valid when made but later lost enforceability.

Key formulas to remember

Void contract: Valid when made + later becomes unenforceable = Void contract; Example: performance becomes impossible after the contract is made.
Void agreement: Void ab initio = never a contract; No rights or duties arise from it. Example: agreement without consideration, subject to exceptions.
Voidable contract: Consent not free → enforceable at the option of the aggrieved party; Valid until that party rescinds it within a reasonable time. Other party cannot avoid it.
Illegal agreement: Forbidden by law → void from the start and may attract penalty; Illegal agreements are a subset of void agreements. A void agreement that is not illegal is simply void.
Unenforceable contract: Good in substance + technical defect = cannot be enforced in court; A doctrinal category, not defined in the Indian Contract Act, 1872. The defect can sometimes be cured, and the contract then becomes enforceable.
Executed vs executory: Executed = fully performed; Executory = something still pending; Check whether any act remains for either party.

How to solve Classification of Contracts questions

Use this method for any question that asks you to name or distinguish a type of contract.

1Read the question and note which basis it uses: validity, formation, performance or enforceability.
2Underline the key fact: consent defect, law forbids, technical defect, conduct, or work pending.
3Ask whether the agreement was ever valid. If never valid, it is a void agreement; if it is also forbidden by law, it is illegal, which is a special kind of void agreement. If valid and later failed, it is a void contract.
4Ask who has the option. If only one party can cancel it, it is voidable.
5For formation, check whether terms were spoken or written (express) or inferred from conduct (implied).
6For performance, check whether anything is still pending for any party. If yes, executory; if nothing, executed.
7Eliminate options that mix up void and voidable or void and illegal, then pick the best fit.

Quickest way: Key-word matching

When to use it: Use when a question gives a short case or a definition and four labels as options.

Match the trigger word: 'at the option of' means voidable.
'Forbidden by law' means illegal (and so void as well).
'Never valid' with no illegality means void agreement.
'Becomes impossible later' means void contract.
'Time-barred' or 'not in required form' means unenforceable.
'Conduct' or 'by actions' means implied.
'Fully performed' means executed; 'yet to be performed' means executory.

Common mistakes in Classification of Contracts

Using void agreement and void contract as the same thing.
Both contain the word void and sound alike.
Fix: A void agreement is void from the start. A void contract was valid first and became unenforceable later.
Saying a voidable contract is void.
Students think that a consent defect ends the contract at once.
Fix: It stays valid until the aggrieved party rescinds it. Only that party has the option.
Thinking every void agreement is illegal.
Both are unenforceable, so the difference seems small.
Fix: All illegal agreements are void, but not all void agreements are illegal. An illegal agreement is void and also forbidden by law. A void agreement need not be illegal, such as one without consideration (subject to the exceptions in Section 25).
Confusing unenforceable contracts with void contracts.
Both cannot be enforced in court.
Fix: An unenforceable contract has a technical defect only, such as being time-barred. A void contract has lost legal effect.
Calling a contract executed when one party has paid but the other has not delivered.
Students look only at the party who has paid.
Fix: Executed needs both sides to have performed. If either side has a pending act, it is executory.

Worked examples

Example 1

Ravi agrees to sell his car to Meena for ₹3,00,000. Meena's consent was obtained by Ravi's fraud. What type of contract is this by validity?

A. Void contract
B. Voidable contract
C. Illegal agreement
D. Unenforceable contract

Show the solution

Key fact: consent was obtained by fraud, so consent was not free.
A contract made without free consent is enforceable at the option of the aggrieved party.
Here Meena is the aggrieved party, and she can rescind it or affirm it.
Eliminate void contract (it has not lost legal effect, and Meena has an option), illegal (selling a car is not forbidden by law) and unenforceable (no technical defect).

Answer: B. Voidable contract

Example 2

Asha hires a tailor to stitch a suit for ₹4,000. She pays ₹4,000 in advance. The tailor has not yet stitched the suit. What is the contract in terms of performance?

A. Executed contract
B. Executory contract
C. Void contract
D. Quasi contract

Show the solution

Check what is pending: the tailor has not performed his promise.
Asha has performed by paying, but the tailor has not.
A contract is executed only when both parties have fully performed.
Since the tailor's work is still pending, the contract is executory.
Void and quasi do not apply, as there is a valid agreement with real promises.

Answer: B. Executory contract

Exam tips

Questions often test the difference between void agreement, void contract and voidable contract, so learn the three definitions word for word in your own language.
Match the trigger word in the case first, then read the options.
Watch for options that look alike, such as illegal and void. Choose the one the facts fit.
For executed vs executory, check both parties, not just one.
With no negative marking, always attempt every question after eliminating wrong options.

Practice questions from Essential Elements of a Contract, Offer and Acceptance

Classification of Contracts in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CSEETClassification of Contracts

Classification of Contracts: frequently asked questions

What is the difference between void and voidable contract?

A void contract cannot be enforced by anyone because it has lost legal effect. A voidable contract is valid until the aggrieved party chooses to cancel it, usually due to a lack of free consent.

What is the difference between void agreement and void contract?

A void agreement is void from the beginning and never becomes a contract. A void contract was valid when made but later became unenforceable, for example by supervening impossibility.

Can you give examples of executed and executory contracts?

If you buy a book and pay the shopkeeper in cash while taking the book, both sides have performed, so it is executed. If you order furniture and the delivery is due next week, it is executory.

What is an implied contract?

An implied contract arises from the conduct of the parties or from the circumstances, not from spoken or written words. Boarding a public bus and taking a seat is a common example.