difference between void contracts and void agreement

Difference between void contracts and void agreement

1. Corporate Legal Environment Assignment Submitted to- Mr. Gurpratap Singh Submitted by- Tania Goel Roll no- 1331878

2. VOID AGREEMENTS Void  agreements are those agreements which are not enforced by law courts. Section 2(g) of the Indian Contract Act defines a void agreement as, "an agreement not enforceable by law”.  Thus no legal rights or obligations arise out of a void agreement and the  parties to the contract do not get any legal redress in the case of void agreements. It is void ab initio i.e. from its very inception, for example an agreement without consideration or with minor.

3. VOID CONTRACT Void contract is defined by Section 2(j) viz., a contract which  is legally enforceable when entered but become void due to supervening impossibility of performance. A void contract is not void from the beginning, it becomes void at a subsequent stage due to the occurrence of an event or change in the original conditions . This may illustrated with the help of an example. A, an Indian, enters into a contract with B, a Pakistani national, to supply woolen carpets  after three months. After some time war breaks out between India and Pakistan. The contract in between A & B shall become void at the outbreak  of war.

4. Difference between a Void Agreement and a Void Contract

5. BASIS OF DIFFERENCE  VOID AGREEMENT VOID CONTRACT Void ab-intio It is void from the very beginning. It is valid when made and continues to remain valid till it is repudiated by the aggrieved party.  It becomes unenforceable later on. Which essential element of contract is missing? It is void because an essential element of a valid contract is missing. It is voidable because the consent of a party is not free. Enforceability It cannot be enforced by any party. It continues to be enforceable if the aggrieved party does not repudiate the contract. Right of third party Third party does not acquire any rights. A third party who purchases goods in good faith and for consideration before the contract is repudiated acquires good title of those goods. Effect of lapse of reasonable time Even on the expiry of a reasonable time, it can never become a valid contract. On the expiry of reasonable time, it may become a valid contract, if the aggrieved party does not repudiate the contract within reasonable time.

6. BASIS OF DIFFERENCE VOID AGREEMENT VOID CONTRACT Treatment Void agreements have been specifically stated in Chapter II of the act under Sections 11, 20, 23, to 30, and 56. No such specific mention is made for void contract in any Chapter of the Act. Rights A void agreement does not create any legal right or obligation upon the parties to the agreement.  On the other hand, a void contract does create a right and an obligation upon the parties. A party to the void contract is within his rights to get back the benefit which he had given to the other party in terms o f money , goods or services and the other party enjoying such benefit under a void contract is placed under an obligation to return that benefit to him. Damage The question of damages does not arise. The aggrieved party can claim damages.