What is Contract and What are it's types ?
What is Contract? Contract is an agreement enforced by Law. In lay-man's term Contract is an agreement where one party gives proposal and the other party accepts it. Without the enforcement of Law the Contract becomes Void i.e. it can be avoided by any of the parties. In Public Works Department Contract means written Undertaking of Execution of work or Supply of Materials or for performance of any service accepted and registered by the competent authority on behalf of the Union or State Authority. Essentials of Contract 1. Contract shall be made by two or more competent parties. 2. It shall be made with the free consent of each and every parties involved. 3. The Contract should have a definite proposal. 4. The contract should be made in such a way that the considerations and objects are lawful. Types of Contracts 1. Item Rate Contract 2. Labor Rate Contract 3. Percentage Rate Contract 4. Lump-Sum Contract 5. Materials Supply Contract 6. Piece Work Agreement It...