VOID AGREEMENTSubmitted To –Dr.Yogita Mandhanya

Submitted By – Aditya GuptaArchesh PatodiApoorva UpadhyayMd. Ali Gori

What Is An Agreement?A meeting of minds with the understanding and acceptance of 

reciprocal legal rights and duties as to particular actions or obligations, which the parties intend to exchange; a mutual assent to do or refrain from doing something; a contract.

The writing or document that records the meeting of the minds of  the parties. An oral compact between two parties who join together for a common purpose intending to change their rights  and duties.

Types Of Agreement/Contract

What Is Void Agreement? “An agreement not enforceable by law is said to be

void” [Sec.2(g)].

Thus a void agreement does not give rise to any legal consequences and is void ab-initio (from the beginning). In the eye of law such an agreement is no agreement at all from its very inception.

Expressly Declared Void AgreementsThe last essential of a valid contract as declared by Section 10 is that it must not be one which is ‘expressly declared’ to be void by the Act. Thus, there arises a question, as to what are ‘expressly declared’ void agreements? The following agreements have been ‘expressly declared’, to be void by the Indian Contract Act: Agreements in restraint of marriage (Sec. 26). Agreements in restraint of trade (Sec. 27). Agreements in restraint of legal proceedings (Sec. 28). Agreements the meaning of which is uncertain (Sec. 29) Agreements by way of wager (Sec. 30). Agreements contingent on impossible events (Sec. 36). Agreements to do impossible acts (Sec. 56).

Agreements in Restraint of Marriage (Sec.26)

Sec.26 “Every agreement in restraint of the marriage of any person, other than minor, is void.”

Difference between a positive promise to marry a particular person And but restrictive agreement containing a promise not to marry anybody else.

Lowe v. Peers, (1768) : Mr. Peers promised Mrs. Catherine Lowe, that he would not marry anyone other than Mrs. Lowe and promised further to pay, Mrs. Lowe, 2000 pounds on default.

Agreements in Restraint of a Trade (Sec.27)

Sec.27 “Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.”

Agreements in Restraint of Legal Proceedings (Sec.28)

“Every agreement, by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights, or which provides for forfeiture of any rights arising from contract, if suit is not brought within a specified time, is void to the extent.

Baroda Spinning Co. Ltd V/s Satyanarayan Marine & Fire Insurance Co. Ltd.

Agreements in Restraint of Legal Proceedings (Sec.28) {cont…}

This Sec. applies to only rights arising from contract. Not to cases of crime or tort.

Does not affect the law relating to arbitration.Does not affect an agreement “not to file an appeal”Select one of the two courts.

Agreements The Meaning of Which Is Uncertain (Sec.29)

According to Section 29, Agreements, the meaning of which is not certain, or capable of being made certain, are void.

Example: Amar agrees to purchase a horse from Akbar for ₹20,000. He also agreed to pay 1,000 more, if the horse proved lucky. It was held that the agreement was void. It was observed that the court had no machinery to determine what luck hirse had bought to the buyer.

Agreements By Way of Wager (Sec. 30)

It is an agreement under which money or money’s worth is payable by one person to another on the happening or non-happening of future uncertain event.

A WAGER is a game of chance in which winning or losing wholly depends on a specified uncertain event.

It is an agreement of betting. Wagering Agreements are considered Illegal in the states of Maharashtra and

Gujarat. In rest states it is considered Void.

Agreements Contingent on Impossible Events (Sec. 36)

As per Section 36 in The Indian Contract Act, 1872 Agreements contingent on impossible event void are Contingent agreements to

do or not to do anything, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made.

Example: A agrees to pay B 1,000 rupees if two straight lines should enclose a space. The agreement is void. (a) A agrees to pay B 1,000 rupees if two straight lines should enclose a space. The agreement is void."

THANK YOU !!!!