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Corporate Legal Framework

Notes
Types of Contract

Oral Representation

Expressed in written Implied Intermediate-term

1. Conditions/warranties
2. Implied by statute
3. Customary usage
4. Standard form of contract

Contracts need not be in Writing

The terms of a contract may be stated in words (written or spoken). This is an express contract.
Thus, there may be a verbal or oral contract. Also the terms of a contract may be inferred from the
conduct of the parties or from the circumstances of the case. This is an implied contract.

Example: A enters into a public transport, for going to his destination. The law will
imply a contract from the very nature of the circumstances, and he will be obliged to pay for the
journey.

Contracts and Documents to be in Writing

There are certain contracts and documents which are required to be in writing and are to be
signed by the parties thereto. Some of these are:
(i) A bill of exchange, cheque, promissory note, etc., under the Negotiable Instruments Act,
1881.

(ii) A memorandum of association of a company registered under the Companies Act, 1956.
(iii) An articles of association of a company registered under the Companies Act, 1956.
(iv) An application for shares in a company.
(v) An application for transfer of shares in a company.

Contracts and Documents which are required to be registered

There are some contracts and documents which are required to be not only in writing but, in
addition, are required to be registered with some competent authority or the other. Some of these
are:
(i) Transfer of immovable property, i.e., lease, sale, mortgage or gift thereof.

(ii) A memorandum of association of a company.
(iii) An articles of association of a company.

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