CH --7 AGREEMENTS EXPRESSLY DECLARED AS VOID

MEANING An agreement not enforceable by law is said to be void. Such agreement has no legal entity and no party of the contract has the right to enforce it by law. EXAMPLE:-An agreement with minor or with a person of unsound mind is void ab-initio. However there may be some agreements which, when made , are enforceable, but later on due to the change in the circumstances, the contract become unenforceable. These are also called void contracts when they become unenforceable.

Various agreements that has been declared void

(1). Agreements made by incompetent parties:- Minor Case:-Mohribibi Vs. Dharmdas Gosh (2). Agreements made under mutual mistake of facts:- Ex:-A agreed to sell his horse to B. At the time of agreement, the horse was dead, though neither party was aware of this fact. (3). Agreement with unlawful consideration and object:- Act forbidden by law Fraudulent Involves injury to the person or property of another If it is immoral

(4). Agreement without consideration:- Ex:- A promises to give wrist-watch to B on his birthday. (5). Agreements in restraint of marriage:-other than minor is void. Exceptions:- If Hindu husband promises to his wife that he will not do another marriage until they are husband and wife, then such promise is valid. If a employer while appointing a woman puts the condition that the woman will remain unmarried till the time she remains in his employment, this agreement is valid because it is a condition for the employment.

(6). Agreements in restraint of trade:- i.e. lawful profession, trade, or business of any kind , is to that extent void. Exceptions:- Sale of goodwill Restraint on partner In case of seperation from partnership On dissolution of firm On sale of goodwill of the firm Trade combinations Agreements of service

(7). Agreements in restraint of Legal proceedings (8). Agreements involving uncertainty:- Example:- A agrees to sell 1ooo tonnes of oil to B. It this agreement there is no clarity of what kind of oil will be sold. The agreement is void.

(9) Agreements by way of Wager or Wagering agreements:- Ex:- bet for rain. Event is Uncertain .So it is void being an wagering agreement. Features of wagering:- Uncertain event Equal chances of win or loss No control on event No other motive than cash / goods Promise to give goods / cash

Effects of wagering agreement:- is void Exceptions:- Contribution towards prize is not unlawful and is valid

Agreements that are also considered equivalent to wagering agreements are:- Commercial transactions Lottery Cross word competition Contract for options Chit fund Speculative transactions Horse-race Contracts of insurance

(10). Agreement to do Impossible Acts:- Ex:- a enters into an agreement with B to discover a treasure by magic. This is a void agreement on the ground of impossibility. Causes of impossibility after entering the contract Change in law Destruction of subject matter Personal incapacity of the promiser