Q.Classify contracts on the basis of validity, giving an example of each.

The same underlying agreement can end up in very different legal categories depending on which essential elements it does or does not satisfy. …

Valid contract — satisfies all essential elements and is fully enforceable by both parties, e.g. A agrees to sell his car to B for ₹2,00,000, both being competent adults with free consent.

Void agreement — not enforceable by law at all, either from the start or from a later point, e.g. an agreement made with a minor (void ab initio), or an agreement to do something later found impossible.

Voidable contract — enforceable at the option of only one party, because the other's consent was not free, e.g. a contract induced by coercion, undue influence, fraud, or misrepresentation; the aggrieved party may choose to affirm or repudiate it.

Illegal agreement — forbidden by law altogether, and even agreements collateral to it become tainted, e.g. an agreement to smuggle prohibited goods. …

Treating 'void' and 'illegal' as the same — every illegal agreement is void, but not every void agreement is illegal (e.g …