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    Chapter # 6: Void Agreement

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    simmion
    An agreement is void if it is: 1) In restraint of marriage, trade, or legal proceedings. Exceptions include agreements related to sale of goodwill, partnerships, trade combinations, and arbitration. 2) Uncertain, such as an agreement that does not clearly specify key details like the subject matter, quality, or price. 3) A wagering agreement where the parties have no interest other than the amount bet, unless contributing to a prize pool. 4) Contingent on impossible events, such as marrying a deceased person. Agreements to do impossible acts are also void.

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    Chapter # 6: Void Agreement

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    simmion
    88 views14 pages
    An agreement is void if it is: 1) In restraint of marriage, trade, or legal proceedings. Exceptions include agreements related to sale of goodwill, partnerships, trade combinations, and arbitration. 2) Uncertain, such as an agreement that does not clearly specify key details like the subject matter, quality, or price. 3) A wagering agreement where the parties have no interest other than the amount bet, unless contributing to a prize pool. 4) Contingent on impossible events, such as marrying a deceased person. Agreements to do impossible acts are also void.

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    An agreement is void if it is: 1) In restraint of marriage, trade, or legal proceedings. Exceptions include agreements related to sale of goodwill, partnerships, trade combinations, and arbitration. 2) Uncertain, such as an agreement that does not clearly specify key details like the subject matter, quality, or price. 3) A wagering agreement where the parties have no interest other than the amount bet, unless contributing to a prize pool. 4) Contingent on impossible events, such as marrying a deceased person. Agreements to do impossible acts are also void.

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    Download as pptx, pdf, or txt
    88 views14 pages

    Chapter # 6: Void Agreement

    Uploaded by

    simmion
    An agreement is void if it is: 1) In restraint of marriage, trade, or legal proceedings. Exceptions include agreements related to sale of goodwill, partnerships, trade combinations, and arbitration. 2) Uncertain, such as an agreement that does not clearly specify key details like the subject matter, quality, or price. 3) A wagering agreement where the parties have no interest other than the amount bet, unless contributing to a prize pool. 4) Contingent on impossible events, such as marrying a deceased person. Agreements to do impossible acts are also void.

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    Chapter # 6

    VOID AGREEMENT
    Void Agreement

    Meanings and definition.


    According to section 2(g)
    “An agreement not enforceable by law is called void
    agreement”
    A void agreement does not create any legal rights and
    obligations and is void ab-initio(from the beginning)
    Agreements Declared Void by law

     Agreement in restraint of marriage


    Any agreement which restraint a major person from
    marriage is void.
    Example:
    A agrees with B that he will not marry C. This agreement is
    void because it is in restraint of marriage.
    Agreement in restraint of trade

    Every agreement by which anyone is restraint from


    exercising a lawful profession, trade or business of any
    kind is void.
    Example:
    M promised to close down his business against the promise
    R to pay some amount. It is an agreement in restrain of
    lawful business.
    Agreement in restraint of trade

    Exception.
    The following are exception to agreements in restraint of
    trade.
    A. Sale of good will
    B. Partner’s agreements
    C. Trade combinations
    D. Service contract
    Agreement in restraint of legal proceedings

    An agreement which prevent a person from taking legal


    action to enforce his rights arising from a contract is void.
    Example.
    A agrees to sell sugar to B. Both agree that in case of breach
    of contract by any party, none of them would go to the
    court.
    Agreement in restraint of legal proceeding

    Exceptions.
    The following of the exceptions to the above rule.
    A. The parties may agrees that in case of dispute among the
    parties, will be referred to arbitration.
    B. The parties may agree that neither party shall appeal
    against the lower court’s decision.
    C. The parties may agrees to select one of the two courts
    which are equally competent to try the lawsuit.
    Uncertain Agreements

    If the term of agreements are not clear and out of capacity


    of the party then it is void contact.
    The uncertainty may be regarding existence, quality
    ,quantity ,price of the subject matter of the agreement.
    Example:
    A agrees to sell 100 liters of oil to B. It is not clear what
    kind of oil is to be sold. The agreement is void because of
    uncertainty.
    Wagering Agreement

    Wager means a bet. A wager is an agreement to pay money


    or money’s worth on the happening or non-happening of
    future event. The parties should have no interest in the
    agreement other than the betting amount.
    Nature of the Agreement
    Wagering agreements are void. In case of breach of such
    agreement nothing can be recovered through
    court.(section.30)
    Example:
    A agrees to pay Rs.1000 to B if its rain today. If it does not
    rain Bwill pay Rs.1000. It is a wagering agreement.
    Wagering Agreement

    Exceptions
    An agreement to contribute to the payment of a prize
    of the value of Rs, to the any winner team of the match is
    valid.
    Agreement Contingent on Impossible Events

    A contingent agreement depends upon the happening or


    non happening of an uncertain event. These agreements
    are void whether the impossibility of event is known or
    not to the parties to the agreement at the time of
    formation.[sec.36]
    Example
    A agrees to pay 20000 to B if he marries A’s daughter C. C
    is not alive at the time of agreement. The agreement is
    void.
    Agreements to do Impossible Acts

    An agreement to do an act impossible in itself is


    void.[sec.56]
    Example.
    A agrees with B that he will discover gold by
    magic. The agreement is void.
    Special Cases
     Insurance Contract
     Lottery
     Crossword puzzles
    • Any Questions

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