lecture-10 - LESSON 10: VOID AGREEMENTS Learning Outcomes...

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LESSON 10: VOID AGREEMENTS Learning Outcomes After today’s class you should be able to answer the following questions; · The agreements expressly declared to be void · The uncertain agreements · The wagering agreements Introduction In today’s lecture we shall study about void agreements and their different classes You all must be aware by now that “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. In the eye of law such an agreement is no agreement at all from its very inception. We have already dealt with the following types of void agreements in the preceding chapters, and will not therefore discuss them here again: The preceding chapters, and will not therefore discuss them here again: 1.Agreements by a minor or a person of unsound mind (Sec. 11). 2.Agreements made under a bilateral mistake of fact material to the agreements(Sec. 20). 3.Agreements of which the consideration or object is unlawful (Sec. 23). 4.Agreements of which the consideration or object is unlawful in part and the illegal part cannot be separated from the legal part (Sec. 24). 5.Agreements made without consideration (Sec. 25). Expressly Declared Void Agreements The 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: 1.Agreements in restraint of marriage (Sec. 26). 2.agreements in restraint of trade (Sec. 27). 3.Agreements in restraint of legal proceedings (Sec. 28). 4.Agreements the meaning of which is uncertain (Sec. 29) 5.Agreements by way of wager (Sec. 30). 6.Agreements contingent on impossible events (Sec. 36). 7.Agreements to do impossible acts (Sec. 56). At the very outset, it may be borne in mind that the law declares these agreements void ab-initio and not illegal, and therefore transactions collateral to such agreements are not made void. In fact it is for this reason that these agreements have not been discussed in the preceding chapter. Illegal agreements are also ‘unlawful agreements’ as they are expressly declared void by the Contract Act. It may be recalled that in the case of illegal agreements, transactions collateral to them are also tainted with illegality and hence void. 1. Agreements in Restraint of Marriage Every individual enjoys the freedom to marry and so according to Section 26 of the Contract Act “every agreement in restraint of the marriage of any person, other than a minor, is void.” The restraint may be general or partial but the agreement is void, and therefore, an agreement agreeing not to marry at all, or a certain person, or a class of persons, or for a fixed period, is void. However, an agreement restraining the marriage of a minor is valid under the
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This note was uploaded on 09/27/2011 for the course BUS 100 taught by Professor Sherry during the Spring '11 term at Faculty of English Commerce Ain Shams University.

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lecture-10 - LESSON 10: VOID AGREEMENTS Learning Outcomes...

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