What is a Void Agreement
As per the provisions of the Indian Contract Act, a Void Agreement is an Agreement which is not enforceable by law.
What are the instances in which an Agreement can be considered as void
An Agreement can be considered as void if any of the following conditions are satisfied:
- Parties to contract are not competent to contract
- Parties executed the contract without free consent
- Agreement does not have lawful consideration
- Agreement is not made for lawful object/s
- Agreement is in restraint of marriage
- Agreement is in restraint of lawful profession, trade or business
- Agreement is in restraint of undertaking legal proceedings
- Agreement is uncertain
- Agreement is a way of wager
What is the impact of Void Agreements
A Void Agreement is illegitimate and unenforceable and does not have any legal effect. The parties to the Agreement do not have any contractual rights or obligations and cannot go to the court to enforce the Agreement.
Neither party can be held liable for any breach of contract or other legal violations that may have occurred under the Agreement. Further, any person who has received an advantage under such Agreement is bound to restore it or make compensation to the person from whom he has received it.
The above article provides a general overview on the topic. For further information with respect to void agreements, kindly contact services@jneela.com.
