Difference or Distinguish between valid, void, voidable and unenforceable contract or Discuss the various kinds of contract?

1. VALID CONTRACT :-
Valid contract is that which is enforceable at law. It creates legal obligations between the parties. It enables one party to compel another party to do something or not to do something.

Parties Obligations :-
In case of valid contract all the parties to the contract are legally responsible for the performance of a contract. If one party breaks the contract other has right to be enforced through the court.

Example :- Amun proposes sell his one acre land to Nasir for one lac and the parties are capable to do the contract by law. So this contract is valid. If Amun fails to deliver the land Nasir can sue him in the court for the delivery of land. On other hand Nasir fails to make the payment, Amun can sue him for the recovery of payment.


2. VOID CONTRACT :-
Definition :- "An agreement not enforceable at law is a void contract".

Originally it is a valid contract but due to certain reasons it becomes void after its formation. A void contract cannot be enforced by either party.

Features of Void Contract :-
a. It is not enforceable by law.
b. It creates no legal rights.
c. It creates no obligations on any party.
d. An agreement which is against the public policy or against any law is also void.
e. Under this contract no compensation can be paid to any party.
An agreement in restraint of marriage and trade are common examples of void contract.

Example :- Sachin and Isha contract to marry on next Sunday. Isha dies before the Sunday. The contract becomes void.

Rights and Duties :-
In this case the parties are not legally responsible to fulfill the contract. If any party has received any benefit is bound to return.
This contract takes place when consent of one of the parties is not free.


3. VOIDABLE CONTRACT :-
"An agreement which is enforceable by law at the option of one or more of the parties, there to but not at the option of the other or others is a voidable contract".

Features of Voidable Contract :-
a. It is enforceable at law at the option of one or more of the parties.
b. A voidable contract can only be objected by the party who has been subject to fraud, coercion, misrepresentation and undue influence.
c. If the contract is revoked by a person rightfully then he can also receive the compensation.
d. The contract is voidable at the option of the party whose consent is caused.
e. Contracts caused by fraud, undue influence, misrepresentation or by coercion are voidable contracts.

Example :- Mr. Qadir threatens to shoot Mr. Shah to purchase a car for one lac. Mr. Shah agrees the contract was made by coercion and is voidable at the option of Mr. Shah.

Rights and Duties :-
The aggrieved party can cancel such contract within a reasonable time. It is also entitled to be compensated by the other party.

Burden of Proof :-
It is the responsibility of the aggrieved party to prove that her consent was obtained by fraud or coercion. If it fails to prove in the court then contract will remain valid.
If the contract is not written or not registered it can not be enforced. But as you will remove this defect the contract can be enforced.

Example :- Suppose "A" borrows the money from "B" and writes a pronote but proper amount stamps are not posted on the pronote. Now in this case contract is valid but not enforceable by law.

4. UNENFORCEABLE CONTRACT :-
Contract is called unenforceable when due to some technical difficulty or lack of any formality required by the special provisions of law a valid contract is not enforced by the court.