1) Void contract

2) Voidable contract

3) Valid contract

1) Void contract: An agreement not enforcible by law is said to be void. An agreement is void under the following circumstances,

(i)When there are technical flaws in the agreement

(ii)When an agreement is of uncertain meaning

(iii)When there are unlawful considerations

2) Voidable contract: When one party obtained the consent of another part by coercion, undue influence, fraud, misrepresentation, etc, then such contracts are said to be voidable.

3) Valid contract: Most desirable and acceptable form of contract. Essential requirements of valid contract.

(i) Parties to the contrtact should be competant.

(ii) Subject matter of the agreement must be legal and definite.

(iii) There must be proper proposal and acceptance

(iv) Parties must give their free consent

(v) There must be lawful consideration