What Is Void Agreement With Example

Agreements or contracts form the backbone of every transaction in business and personal dealings. However, not all contracts are enforceable in a court of law. Some contracts may be void, which means that they have no legal effect, and neither party can seek legal remedies in case of a breach. In this article, we will explore what void agreements are, how they differ from voidable agreements, and what makes them unenforceable.

What is a Void Agreement?

A void agreement is a contract that is considered to be null and void from the beginning, as if it never existed. Such agreements are legally ineffective, and the parties to the agreement cannot enforce them in a court of law. In simple terms, a void agreement is one that is not enforceable, and no legal rights arise from it.

A void agreement may arise due to various reasons, including illegality, impossibility, or lack of capacity to contract. Let's examine each of these reasons in detail.

Illegality:

An agreement may be considered void if it violates any law or is against public policy. For example, an agreement to commit a crime, sell illegal drugs, or engage in prostitution is void. Similarly, an agreement to defraud someone or to deprive them of their legal rights is also void.

Impossibility:

An agreement may be considered void if it is impossible to perform. For example, an agreement to sell a car that has already been destroyed in an accident is void. Similarly, an agreement to marry a dead person is void.

Lack of capacity to contract:

An agreement may be considered void if one or both parties lack the capacity to contract. For example, a minor is not legally capable of entering into a contract, and any agreement made with a minor is void. Similarly, a person who is mentally ill or intoxicated cannot enter into a contract, and any agreement made with them is void.

Types of void agreement

There are different types of void agreements, which are null and void from the beginning and have no legal effect. These include:

1. Agreements in restraint of marriage: Agreements that restrict a person's right to marry are considered void.

2. Agreements in restraint of trade: Agreements that restrict a person's right to carry on a trade or profession are considered void, except in certain limited circumstances.

3. Agreements with a minor: Agreements with a person who is under the age of 18 years are considered void, except in certain circumstances.

4. Agreements made under coercion or undue influence: Agreements made under coercion or undue influence are considered voidable at the option of the aggrieved party.

5. Agreements with unlawful consideration: Agreements made for an unlawful consideration or object are considered void.

6. Agreements to commit a crime: Agreements to commit a crime or to engage in any illegal activity are considered void.

7. Agreements in restraint of legal proceedings: Agreements that restrict a person's right to initiate legal proceedings are considered void.

8. Agreements that are impossible to perform: Agreements that are impossible to perform due to their nature or terms are considered void.

9. Agreements against public policy: Agreements that are against public policy or morals are considered void.

It is important to note that the legal implications of a void agreement may vary depending on the jurisdiction and the specific circumstances of the case.

 

How is a Void Agreement Different from a Voidable Agreement?

A void agreement is different from a voidable agreement, which is a contract that can be either affirmed or rejected by one or both parties. A voidable agreement is valid until it is rescinded or canceled by one of the parties. For example, a contract entered into under duress or coercion is voidable, as the party under duress can choose to either affirm or reject the contract.

On the other hand, a void agreement is null and void from the beginning and cannot be enforced by either party. There is no need to rescind or cancel a void agreement, as it has no legal effect in the first place.

 

Examples of Void Agreements:

Some common examples of void agreements include:

1.      An agreement to commit a crime or engage in illegal activities.

2.      An agreement to sell stolen property.

3.     An agreement to marry a dead person.

4.     An agreement to perform an impossible task.

5.     An agreement with a minor or someone who lacks the capacity to contract.

6.     An agreement to defraud someone.

 

FAQs related to Void Agreements:

1.   What is a void agreement?

     A void agreement is an agreement that is considered null and void from the beginning and has no legal effect. It is essentially an agreement that is not enforceable by law.

2. What is the difference between void and voidable agreements?

    A void agreement is one that is completely null and void from the beginning and has no legal effect. A voidable agreement, on the other hand, is an agreement that is initially valid but can be voided or canceled by one of the parties due to certain legal reasons, such as fraud, misrepresentation, or coercion.

3.  Can a void agreement be enforced in court?

   No, a void agreement cannot be enforced in court because it is considered null and void from the beginning and has no legal effect.

4.  What are the common types of void agreements?

    There are different types of void agreements, which include agreements in restraint of marriage, trade, or legal proceedings, agreements with a minor, agreements made under coercion or undue influence, agreements with unlawful consideration, agreements to commit a crime, agreements that are impossible to perform, and agreements against public policy.

5.  What are the legal implications of a void agreement?

     A void agreement has no legal effect, which means that it cannot be enforced in court or used to create legal obligations. However, parties may still be liable for any damages or losses caused by their actions or conduct in relation to the void agreement.

6.  Can a void agreement be ratified?

    No, a void agreement cannot be ratified because it is considered null and void from the beginning and has no legal effect. Ratification can only be done for agreements that are initially valid but may be voidable due to certain legal reasons.

7. How can one avoid entering into a void agreement?

    One can avoid entering into a void agreement by ensuring that the agreement is legally valid and enforceable, seeking legal advice before signing any agreement, and ensuring that all parties have the legal capacity to enter into the agreement.

Conclusion:

In conclusion, a void agreement is one that is null and void from the beginning and has no legal effect. Such agreements arise due to various reasons, including illegality, impossibility, or lack of capacity to contract. It is essential to be aware of the reasons that can make an agreement void to avoid any legal implications.

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