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.
Key Features of Void Agreement:
- An agreement that is void is one that is not enforceable by law and cannot be enforced by either party.
- A void agreement may be voidable, meaning that one party may decide whether to enforce it or not.
- Void agreements are usually the result of a lack of consideration, capacity, or legality.
- A court of law has the authority to declare an agreement void.
Difference between Void and Illegal Agreement
Void agreements and Illegal agreements are both types of contracts that are unenforceable by law. It is evident from the Indian Contract Act, 1872, that there is a fine line separating an illegal agreement from a void one. An illegal agreement is strongly forbidden by law and can result in penalties for the parties involved. A void agreement may not be banned by law.
Table of Content
- What is Void Agreement?
- What is Illegal Agreement?
- Difference between Void and Illegal Agreement
- Conclusion
- Difference between Void and Illegal Agreement- FAQs
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