Classification of Contracts

Classification of contracts depending on gravity;

  1. Rescissible Contract.
  2. Voidable
  3. Unenforceable
  4. Void

Rescissible is one which has all the essential requisites of a contract by which may be set aside by reason of equity on account of damaged to one of the contracting parties or upon a third person.

Voidable – defective by reason of incapacity or vitiated consent of one of parties binding unless annulled by proper court of action.It is susceptible of ratification.

Unenforceable – one that cannot be enforced unless ratified and available only to contracting parties not to third persons.

Void or Inexistent Contracts – one which has no effect from the beginning (void ab initio), as if it had never entered into or which cannot be validated either by time or ratification.


About Jonathan Ruiz CPA

Entrepreneur, CPA Mentor, Stock market Newbie Mentor, Influential Author and Master's Degree in International Business graduate in Hult International Business School, UK. A father of two lovely daughters.
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