VOID AGREEMENTS

By Shweta Bambuwala

Void Agreements:A Void Agreement is not enforceable by Law. i.e. NO LEGAL EXISTANCE

Types of Void Agreements:1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. By Incompetent Persons Under Mutual Fact Under Mistake as to Law not in Force Consideration is Unlawful. Consideration or Object of which is Unlawful Without Consideration In Restraint of Marriage In Restraint of Trade In Restraint of Legal Proceedings The Meaning is Uncertain By way of Wages Contingent on an Uncertain Future event Contingent on an Impossible event To do an Impossible event To do an act which subsequently becomes impossible

Agreement in Restraint of Marriage:Except minor it is void (sec.26) Right to get married Right to exercise choice For minor does not apply till the attainment of majority

Agreement in Restraint of Trade:Every agreement by which anyone is restraint from exercising a Lawful profession trade or business of any kind, is to that extent void. (sec.27) Usually such Trades are contrary to public policy Divisible agreements can be carried on for part of agreement which is valid

Agreements by Way of Wager:Void No suit enforceable for recovery of anything alleged to be won.. Wager An agreement between two parties to the effect that if a given uncertain event happens, one party shall pay certain sum to other party. Mutual chance of gain & loss is must Essence is one party to win & other to loss upon a future event Betting agreements are wagering agreements.

Essentials: Uncertain event Mutual chance of gain loss Promise to pay money or money's worth No control over happening of event Exceptions: Horse racing not illegal as per sec.294(a) Speculation is not wagering contract Insurance contract Games of skill or athletic competitions Cross literacy competitions Share Market Transactions Chit funds us declared by court of Law

Contingent Contract

A Contract to do or not to do something if some event is collateral to such contract, does or does not happen (sec 31).

Essentials 1.Existence of Contingency 2.Contingency must be uncertain 3.Event must be collateral Ex:- Fire Insurance

Rules regarding Contingent

Contract
Enforcement of contract contingent on, Happening of a Future Uncertain Event Non happening of a Future Uncertain Event (Negative Condition) Future Conduct on living person Specified event happening within fixed time Specified event not happening within a fixed time Impossible events

Quasi Contracts
Quasi Contract is not a contract at all. No contract in fact but created by law. Also termed as Certain Relations resembling those created by law . Also known as implied contracts as obligation is implied Principles of quasi contracts Duty is foundation of quasi contracts A person should not be allowed to enrich himself at the expense of another

Types of quasi Contracts

Necessaries supplied to incompetent person Payment by an interested person Liability to pay for non gratuitous acts
Conditions to be fulfilled are, Thing must be done lawfully No intention to act gratuitously person must enjoy benefit of the act

Finder of goods Mistake or coercion