Define Void Contract.

Question: Define Void Contract. [MPJS 2003, Gujarat JS 2020]

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Answer

Section 2, clause (g) of the Indian Contract Act defines the Void Agreement. It states that, “An agreement not enforceable by law is said to be void”.

The unenforceability contemplated in this clause is one arising under the provisions of substantive law. It may be declared void by this Act, or by any other law. A contract void since its inception is no contract at all, not having passed from the stage of the agreement to being a contract. It is an agreement not enforceable by law. For example, a contract between A and B to purchase A’s property for using it for the purpose of selling drugs, is a void agreement because of want of illegality involved in it.

Illustration: A promises to superintend, on behalf of S, a legal manufacturer of indigo, and illegal traffic in other articles. B promises to pay, a salary of 10,000 rupees a year. The agreement is void, the object of A’s promise, and the consideration for B’s promise, being in part unlawful.

A void contract is a paradox (a misnomer), in truth, there is no contract at all which is void. A valid contract may later become void by reason of external factors or supervening acts such as force majeure. By clause (e) of the act, every promise and every set of promises forming the consideration for each other is an agreement and by clause (h), an agreement enforceable by law is a contract. By clause (g), an agreement not enforceable by law is said to be void. This distinction is ought to be observed.

The following types of agreement are declared to be void:

• Agreements of which consideration and objects are unlawful in part I, [S. 24]
• Agreements without consideration, [S. 25]
• Agreements in restraint of marriage, [S. 26]
• Agreements in restraint of trade, [S. 27]
• Agreements in restraint of legal proceedings, [S. 28]
• Unmeaning agreements, [S. 29]
• Wagering agreements, [S. 30] and
• Agreements to do impossible acts. [S. 56

A void agreement is not enforceable at the option of either party. However, although a void agreement is described as one not enforceable, yet reliefs can be granted under it. For example, if goods are delivered under a void agreement, the goods are recoverable by an action of conversion in tort. If the contract is discovered to be void, the obligation of restitution arises under s 65. A party to an agreement which is void for unlawful consideration or object may be entitled to recover if he can establish his claim otherwise under that agreement; so would a party to such an agreement be entitled to recover if he is not a participant in the illegality.

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Law of Contract Mains Questions Series: Important Questions for Judiciary, APO & University Exams

1. Law of Contract Mains Questions Series Part-I
2. Law of Contract Mains Questions Series Part-II
3. Law of Contract Mains Questions Series Part-III
4. Law of Contract Mains Questions Series Part-IV
5. Law of Contract Mains Questions Series Part-V
6. Law of Contract Mains Questions Series Part-VI
7. Law of Contract Mains Questions Series Part-VII
8. Law of Contract Mains Questions Series Part-VIII
9. Law of Contract Mains Questions Series Part-IX
10. Law of Contract Mains Questions Series Part-X