In India, contracts are primarily governed by the Indian Contract Act, 1872, which provides the foundational legal framework for the formation, performance, and enforcement of agreements between parties. A contract in India is an agreement that is legally enforceable, and for it to be valid, it must meet essential elements such as offer, acceptance, consideration, free consent, and a lawful object.

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Special categories of contracts, such as those involving sale of goods, partnership, agency, and negotiable instruments, are governed by specific laws like the Sale of Goods Act, 1930, the Indian Partnership Act, 1932, and the Negotiable Instruments Act, 1881.

 

Additionally, contracts in India are influenced by provisions in other statutes such as the Consumer Protection Act, 2019, which safeguards consumer rights, and the Specific Relief Act, 1963, which provides remedies for the breach of contracts. 

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Contracts are classified in several ways, mainly based on how they are formed, their nature, or their enforceability. Here’s a full breakdown :

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Based on Formation 

Express, Implied, Quasi

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Based on Validity 

Valid, Void, Voidable, Illegal, Unenforceable

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Based on Performance 

Executed, Executory, Unilateral, Bilateral

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Based on Special Nature 

Indemnity, Guarantee, Bailment, Pledge, Agency