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Types of Contracts
In connection with contracts, there are four types of classifications. Types of contracts in contract law
are as follows;
1.
On the basis of Formation,
2.
On the basis of Nature of Consideration,
3.
On the basis of Execution and
4.
On the basis of Validity.
Quasi Contract: In case of Quasi Contract there will be no offer and acceptance so, Actually there
will be no Contractual relations between the partners. Such a Contract which is created by Virtue of
law is called Quasi Contract. Sections 68 to 72 of Contract Act read about the situations where court
can create Quasi Contract.
Sec. 68: When necessaries are supplied
Sec. 69: When expenses of one person are paid by another person.
Sec. 70: When one party is benefited by the activity of another party.
Sec. 72: When payment is made by mistake or goods are delivered by mistake.
Example: A case on this occasion is Chowal Vs Cooper. In this case A`s husband becomes no more.
She is very poor and therefore not capable of meeting even cost of cremation. B, one of her relatives,
understand`s her position and spends his own money for cremation. It is done so without A`s request.
Afterwards B claims his amount from A where A refuses to pay. Here court applies Sec. 68 and
creates a Quasi Contract between them.
Third Party Rights: In case of Voidable Contracts third party may attain rights on concerned property,
If the third party gets the property before the Voidable Contracts gets declared as Void. But in case of
Void Contract third party cannot get any right.