Express Contracts. Parties agree specifically to do or not do something either in writing or orally Implied Contracts The parties create a contract by their actions or conduct. Examples: ordering food at a restaurant, buying gas, licensee getting personal information from a buyer Executory Contract One or more parties have a duty to perform the contact terms. Buy/Sell Contract, for example is executory as long as contingencies exist. Executed Contract All parties have fulfilled their contractual obligations and all contingencies have been removed. A Buy/Sell Contact is executed when the deed has transferred to buyer and the money given to seller. Status Of Contracts The status of a contract determines how the court will look at the contract. Valid A valid contract has all legal elements (legally competent parties, offer & acceptance, proper legal form, legal consideration, reality of consent, signatures) – Contingencies have been removed and the contract is fully enforceable by the court. Void The contract that has no legal force or binding effect. A void contract is no contract at all and never was. A contract with a racial restrictive covenant is void. A contract agreement to perform an illegal act is void. Voidable The contract that appears valid and enforceable on its face but may be rescinded by one or both of the parties who acted under a disability. Disabilities include contracts entered into under duress, undue influence, misrepresentation, fraud, contracting with a minor (under 18) or someone who is incompetent. The aggrieved party can enforce the contract the other party cannot. A contract with a contingency that cannot be met is voidable Unenforceable A contract that was valid when made but either cannot be proved or will not be enforced by a court. It had all legal elements but is only enforceable between parties. When neither party can xxx the other for performance. A contract not performed within the statutory time period is unenforceable. NOTE: If the parties agree to go ahead with a contract they can do so without being concerned with the courts even though performance dates have not been met or contingencies have not been removed.
Express Contracts. The first part of the Indian Contract deals with promises which are expressly made. Contracts arising from expressly made promises are called express contracts. According to act “insofar as the proposal or acceptance of any promise is made in words, the promise is said to be express”. Thus contracts entered into between the parties by words, spoken or written, are known as express contracts.
