Understanding Contracts: Types, Agreements, and Seller Rights

Posted on Mar 12, 2025 in Law & Jurisprudence

Understanding Contract Types

1. Express Contract

Explicitly stated terms and conditions, either verbally or in writing.

2. Implied Contract

Terms and conditions inferred from circumstances, but not explicitly stated.

3. Quasi-Contract

Imposed by law, even if parties didn’t explicitly agree.

4. Voidable Contract

Can be declared invalid by one or both parties.

5. Void Contract

Invalid from the start, usually due to a fundamental flaw or illegality.

6. Unilateral Contract

One party makes a promise, but the other party doesn’t.

7. Bilateral Contract

Both parties make promises or undertakings.

8. Special Contract

Governed by specific laws or regulations (e.g., sale of goods).

Types of Contracts: A Summary

  1. Express Contract: A contract where the terms are clearly stated.
  2. Implied Contract: A contract where the terms are not clearly stated, but are understood.
  3. Void Contract: A contract that is not valid.
  4. Voidable Contract: A contract that can be canceled.
  5. Unilateral Contract: A contract where one person makes a promise.
  6. Bilateral Contract: A contract where both people make promises.

Agreement vs. Contract: Key Differences

Agreement

  1. Mutual understanding between parties.
  2. May not be legally binding.
  3. No specific formalities required.

Contract

  1. Legally binding agreement.
  2. Essential elements: offer, acceptance, consideration, intention, capacity, legality.
  3. Can be enforced by law.

Rights of an Unpaid Seller

Who is an Unpaid Seller?

An unpaid seller is someone who has sold goods but hasn’t received payment yet.

Rights of an Unpaid Seller

  1. Right to withhold delivery: Can refuse to give the buyer the goods.
  2. Right to stop goods in transit: Can stop the goods from being delivered if they’re still on the way.
  3. Right to resale: Can sell the goods to someone else if the buyer doesn’t pay.
  4. Right to claim damages: Can ask for compensation if the buyer doesn’t pay.
  5. Right to lien: Can keep the goods until the buyer pays.

Modes of Termination of Bailment

  1. End of Bailment Period: When the bailment period ends, the bailment is terminated.
  2. Return of Property: When the bailee returns the property to the bailor, the bailment is terminated.
  3. Damage or Destruction of Property: If the property is damaged or destroyed, the bailment is terminated.
  4. Death of Bailor: If the bailor dies, the bailment is terminated.
  5. Agreement to Terminate: If the bailor and bailee agree to terminate the bailment, it is terminated.

Rights and Duties of the Pawnor

Rights:

  1. Right to Redeem Property: The pawnor has the right to redeem the property.
  2. Right to Claim Interest: The pawnor has the right to claim interest on the loan.
  3. Right to Seek Security: The pawnor has the right to seek security for the property.

Duties:

  1. Duty to Take Care of Property: The pawnor has a duty to take care of the property.
  2. Duty to Provide Security: The pawnor has a duty to provide security for the property.
  3. Duty to Pay Interest: The pawnor has a duty to pay interest on the loan.