14-11-2012, 10:59 AM
VOID AGREEMENT
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An agreement which is not enforceable by law is void- according to sec (2g).
The act has specified various factors due to which an agreement may be considered as void agreement.
Unlawfulness of object and consideration of the contract are few factors,
Illegality of contract makes it an void agreement
EXAMPLE
If an agreement is restraint of trade, marriage, legal proceedings etc these are void agreement.
As these agreement are prohibited by the Indian panel code.
Features
1) A void agreement Is Ab –initio.
that is the agreement is void from the start.
As it is not enforceable by law.
2) There will be no compensation under void agreement.
3) The person acquiring goods under a void agreement would get no rights over them and would not be entitled to make any transactions in relation to them.
4) All illegal agreements are void in nature from the start of the agreement.
5)A simply void agreement would not involve any criminality ,so would not invite any punishment
When an agreement can be void
Agreement made with the minors below the age of 18 is void Ab –initio .
Agreements made with persons of unsound mind are void in nature .
Unsound mind:
Lunatics
Idiots
Drunkards.