Tuesday, 2 August 2011

Discuss those contracts which have been declared void by law

Void Contract :-
Void contract are those which are not enforceable by law. Following contracts have been declared void by law.

1. Agreement in Restraint of Marriage :-
An agreement in which an adult person is prevented or restraint from marriage is declared void by law.
The law regards marriage as the right of every person. But law does not favor the marriage of minor.

Example :- Mr. Chips agrees with Miss. Sophie that she will not marry with Mr. Sams. It is a void agreement.

2. Agreement in Restraint of Business :-
Any lawful profession, trade or business of any kind restrained by any agreement is declared void.

Example :- Mr. Adeel a publisher offers Rs. one lac to Miss. Hina not to deal in this business. Miss. Hina accepts the agreement is void. Mr. Adeel cannot enforce her for agreement.

3. Mistake of Both Parties :-
If the the parties of agreement are under mistake as to a matter of fact essential to the agreement, the agreement is void.

4. Agreement By Way of Wager :-
An agreement by way of wager is void with certain exceptions.
The wagering contract is only void and not illegal. A wager is a game of chance, in which loss or gain depends on certain events.

Example 1 :- Mr. Shan bets with Mr. Hassan and loses. An agreement between the two is void.
Example 2 :- In the above case if Mr. Shan borrows money from Mr. Akram to pay Mr. Hassan. The contract between Mr. Shan and Mr. Akram is valid.

5. Uncertainty in Agreement :-
For the valid agreement it is necessary that it should be certain and clear in all respect. If the meanings of the agreement are not clear and it is not capable of being certain is void by law.

Example :- Suppose Miss. Bina sells to Mr. Raj ten books. Nothing is clear and certain about the books. So it is void agreement.

6. Unlawful Object :-
If the object or consideration of the agreement against the law, it will make the agreement void. Any object of the agreement which is forbidden by law or it defeats the provisions of any law is void.

7. Immoral :-
If any agreement is against the moral values of the society it will be also void.

8. Fraudulent Case :-
If the object or consideration of an agreement is to injure the other property or a person is also a void agreement.

9. Agreement Without Consideration :-
An agreement may not exist without consideration it will be a void agreement.

10. Agreement To Do Impossible Acts :-
If the object of an agreement is to perform that act which is not possible. Such type of agreements are void ."An agreement to do an act impossible in itself is void."

Example :- Suppose Mr. Fazil agrees to pay Mr. Singh Rs. 1000 if he put the moon on his hand. It will be void agreement.

11. Agreement in Restraint of Legal Proceedings :-
Every person is allowed by law to obtain his legal rights through the legal proceedings. No body should prevent others.

According to contract act "Every agreement, by which a party is restrained absolutely from enforcing his rights under or in respect of any contract by the usual legal proceeding in the ordinary tribunals is void to the extent."

Example :- Mr. Jhon agrees to sell one hotel to Mr. Kim for Rs. 10 lac and further agree that in case of breach of contract none of them will go to the court. This agreement is void.


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