VOID AGREEMENTS(INDIAN CONTRACT ACT,1872)

AGREEMENTS According to section 2(e),

“Every promise and every set of promises forming a consideration for each other, is an AGREEMENT”

MEANING OF VOID AGREEMENTS According to section 2(e),

An agreement which is not enforceable by law

TYPES OF VOID AGREEMENTS AGREEMENT BY OR WITH PERSON INCOMPETENT

TO CONTRACT(section 11) AGREEMENT ENTERED INTO THROUGH A MUTUAL

MISTAKE OR FACT BETWEEN THE PARTIES(20) AGREEMENT, THE OBJECT OR CONSIDERATION OF

WHICH IS UNLAWFUL OR IS PARTLY UNLAWFUL(23,24)

AGREEMENTS MADE WITHOUT CONSIDERATION(25)

AGREEMENTS IN RESTRAINT OF MARRIAGE(26)

AGREEMENTS ON RESTRAINT OF TRADE(27)

AGREEMENTS IN RESTRAINT OF LEGAL PROCEEDINGS(29)

WAGERING AGREEMENTS(30) IMPOSSIBLE AGREEMENTS(56)

AGREEMENT BY OR WITH PERSON INCOMPETENT TO CONTRACT

As under section 11,A person who has not attained the

age of majority or is of unsound mind or is disqualified by any law are incompetent to contract and the contract made by them is void-ab initio.

AGREEMENT ENTERED INTO THROUGH A MUTUAL MISTAKE OR FACT BETWEEN THE PARTIES

When there is mutual mistake of both the parties the agreement is said to be void.

BILATERAL UNILATERAL

AGREEMENT, THE OBJECT OR CONSIDERATION OF WHICH IS UNLAWFUL OR IS PARTLY UNLAWFUL

The consideration or object of an agreement is unlawfull when:-

it is forbidden by law if it is fraudlent if it defeats the provisions of any law if it implies injury to a person or

property of another if the court regret it as immoral or opposed to public poilicy

AGREEMENTS MADE WITHOUT CONSIDERATION

According to section 10 ‘consideration is one of the essential elements of a contract’.

According to section 25, ‘an agreement made without consideration is void’

AGREEMENTS IN RESTRAINT OF MARRIAGE

According to section 26, Every agreement in restraint of the marriage of any person other then a minor is void.

AGREEMENTS ON RESTRAINT OF TRADE

Every agreement by which anyone is restraint from exercising a lawful profession, trade or business of any kind is to that extent void

AGREEMENTS IN RESTRAINT OF LEGAL PROCEEDINGS

According to section 28, the following two agreements amount to restraint of legal proceedings and are thus held to be void:-

-Agreement restricting enforcement of rights.

-Agreement limiting the period of limitation.

WAGERING AGREEMENTS

Agreement by way of wager are void and no suit shall be brought for recovering anything alleged to be won an any wager. Such agreements are chance oriented and therefore completely uncertain.

ESSENTIALS OF WAGERING AGREEMENT Promise to pay money or money’s

worth. Uncertain events. Mutual chances of gain or loss. Neither party to have control over the

event. No other interest in the event.

IMPOSSIBLE AGREEMENT

According to section 56.

Agreement to do an impossible act in itself is void.

CAPACITIES OF THE PARTIES

According to section 11,Every person is competent to contract who is of the age of majority, according to the law to which he is subject, and who is of the sound mind and is not disqualified from contracting by law.

INCOMPETENT PARTIES

•A PEARSON WHO HAS NOT ATTAINED THE AGE OF MAJORITY.MINOR

•A PERSON WHO CANT UNDERSTAND THE TERMS OF CONTRACT OR CAN NOT TAKE A RATIONAL JUDGEMENT.

UNSOUND MIND

•A PERSON WHO IS NOT ALLOWED TO ENTER INTO ANY CONTRACT TO WHICH HI SI SUBJECT.

DISQUALIFIED BY LAW

MINOR

According to section 3 of indian majority act,1875

A person is said to b major when:-When a guardian of minor is appointed under guardian and ward act, 1890

When minor property has passed under the superintendence of the court of ward

In other cases

On completion of 21 years

On completion of 21 years

On completion of 18 years

UNSOUND MIND

According to section 12,A person is said to be of sound mind if at

the time of making of contrct he is capable:-

To understand the terms of the contract

To form a rational judgement os to its effects upon his intrests

PERSONS DISQUALIFIED BY LAW

The following persons are disqualified by law:-

1) ALIEN ENEMIES 2) FOREIGN SOVERIGNS 3) CONVICTS 4) INSOLVENTS

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