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    Void Agreement

    Uploaded by

    Rakhi Nain

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Void Agreement

    Uploaded by

    Rakhi Nain
    9 views15 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    Download as pptx, pdf, or txt
    9 views15 pages

    Void Agreement

    Uploaded by

    Rakhi Nain

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    VOID AGREEMENT

    What Is Void Agreement?


     “Void agreement is an agreement which is not enforceable by law ”
    [Sec.2(g)].

     The agreement which are not enforeceable by law right from the time
    when they are made, are void-ab-initio.
    Void Agreement
    1. Never Valid
    2. Valid Once
    Expressly Declared Void Agreements
    The last essential of a valid contract as declared by Section 10 is that it must not be
    one which is ‘expressly declared’ to be void by the Act. Thus, there arises a question,
    as to what are ‘expressly declared’ void agreements? The following agreements have
    been ‘expressly declared’, to be void by the Indian Contract Act:
     Agreements in restraint of marriage (Sec. 26).
     Agreements in restraint of trade (Sec. 27).
     Agreements in restraint of legal proceedings (Sec. 28).
     Agreements the meaning of which is uncertain (Sec. 29)
     Agreements by way of wager (Sec. 30).
     Agreements contingent on impossible events (Sec. 36).
     Agreements to do impossible acts (Sec. 56).
    Agreements in Restraint of Marriage
    (Sec.26)
     Sec.26 “Every agreement in restraint of the marriage of any person,
    other than minor, is void.”
     Difference between a positive promise to marry a particular person
    And but restrictive agreement containing a promise not to marry
    anybody else.
     LX promised to marry Y only and none else, and to pay Rs 2000 in
    default. X married Z and Y sued for recovery of Rs. 2000. It was eld
    that y could not recover anything because the agreement was in
    restraint of marriage.
    Agreements in Restraint of a Trade
    (Sec.27)
    An agreement that interferes with a person’s
    right to engage him in a lawful business, trade,
    occupation or profession is called an agreement
    in restraint of trade. “ Every agreement by which
    any one is restrained from exercising a lawful
    profession, trade or business of any kind, is to
    that extent is void” (sec.27)
    ”
    Agreements in Restraint of
    Legal Proceedings
    (Sec.28)
    “Every agreement, by which any party thereto is restricted absolutely
    from enforcing his rights under or in respect of any contract, by the
    usual legal proceedings in the ordinary tribunals, or which limits the
    time within which he may thus enforce his rights, or which provides
    for forfeiture of any rights arising from contract, if suit is not brought
    within a specified time, is void to the extent.

    Baroda Spinning Co. Ltd V/s Satyanarayan Marine & Fire


    Insurance Co. Ltd.
    Agreements in Restraint of
    Legal Proceedings (Sec.28)
    {cont…}
    An agreement that prevents one party from enforcing his legal rights
    under a contract through the legal process (of courts, arbitrati on, etc)
    then such an agreement is expressly void agreement.

    A clause in a contract provided that no action should be brought upon it


    in case or breach. Such a clause is void because it restricts both the
    parties from enforcing their legal rights
    Agreements The Meaning of Which
    Is Uncertain (Sec.29)
    According to Section 29, Agreements, the meaning of which
    is not certain, or capable of being made certain, are void.

    Example: Amar agrees to purchase a horse from Akbar for ₹


    20,000. He also agreed to pay 1,000 more, if the horse proved
    lucky. It was held that the agreement was void. It was
    observed that the court had no machinery to determine what
    luck hirse had bought to the buyer.
    Agreements By Way of Wager
    (Sec. 30)
     It is an agreement under which money or money’s
    worth is payable by one person to another on the happening or non-
    happening of future uncertain event.
     A WAGER is a game of chance in which winning or losing wholly depends on a
    specified uncertain event.
     It is an agreement of betting.

     X promised to pay Rs. 1,000 to Y if it rained on a particular day, and y promises


    to pay Rs.2,000 to X if it did not. Such agreement is a wagering agreement.
     An agreement to contribute to the payment of
    a prize of the value of Rs. 500 or more to the
    winners of any horse race is valid.
    Agreements Contingent on Impossible
    Events (Sec. 36)
    As per Section 36 in The Indian Contract Act, 1872
     Contingent agreements to do or not to do anything, if an impossible event
    happens, are void, whether the impossibility of the event is known or not to the
    parties to the agreement at the time when it is made.

     Example: A undertakes to put life into the dead wife of B. This is void.

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