Difference between Void and Illegal Agreement

What is Void Agreement?

Void denotes the absence of legal force, whereas an agreement refers to a mutual understanding between parties about a course of action. A void agreement is, to put it simply, one that is not enforceable by law; i.e., one that is not legally binding. When an agreement is deemed invalid, it no longer has any legal force behind it. The parties do not acquire any legal standing from such an agreement, nor do they acquire any rights or obligations. The empty transaction’s related transactions would be legitimate. According to the Indian Contract Act 1872, some agreements are null and void from the beginning, including those about marriage restrictions, commerce restrictions, legal action restrictions, agreements with minors, and agreements whose purpose or consideration is illegal....

What is Illegal Agreement?

An illegal agreement is one that contravenes the law, is criminal in nature, goes against public policy, or is immoral. The agreements that are collateral to the original agreement are also null and invalid since these agreements are void ab initio. The transaction related to or incidental to the primary agreement is referred to here as the collateral agreement. Entering into an illegal agreement is considered an offense in the eyes of the law since it is severely forbidden. Accordingly, the Indian Penal Code penalizes the parties for the same offense. An agreement with ambiguous terms, an agreement to kill someone, etc. are a few instances of illegal agreements....

Difference between Void and Illegal Agreement

Basis Void Agreement Illegal Agreement Meaning A contract that isn’t enforceable by law is void agreement. An agreement is illegal if the making of it is prohibited by the law. Object Not illegal. Illegal. Consequence When an agreement loses its enforceability by law, it becomes void. An illegal agreement is null and void ab initio, meaning it is unenforceable from the start. Prohibition by IPC No void agreements are not prohibited by IPC. Yes, illegal agreements are prohibited by IPC. Scope Wide. Narrow. Penalty The parties to a void agreement are not subject to any legal penalties. Parties to an illegal agreement may attract criminal offense and subject to penalty. Connected Agreements May not always be null and invalid All connected agreements are null and void. Remedy There are no applicable legal remedies since the contract is deemed invalid. Since it is seen as illegal and against the law, there are legal remedies possible. Avoidance Can be avoided by any party without resulting in legal repercussions. Can be avoided by both parties, but it may also give rise to legal action and be illegal. Example A contract that a minor has signed, as minors are not deemed to have the legal competence to engage into contracts. A contract for illegal narcotics, as it is prohibited by law to do such things....

Conclusion

Void and illegal agreement are not the same thing. The illegality of the contract, such as a contract with an illegal item or consideration, is one of the elements that renders an agreement invalid. Since a void agreement is void from the start, it has no legal consequences. On the other hand, since it is initiated, an illegal agreement has no legal consequences. All illegal agreements are null and void, yet the opposite is untrue. Other agreements pertaining to an illegal agreement are deemed invalid....

Difference between Void and Illegal Agreement- FAQs

In the event that one side breaches a void agreement, what happens?...