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void agreement

English · Contract and commercial

Meaning. An agreement not enforceable by law, which therefore creates no legal rights or obligations.

Section 2(g) of the Indian Contract Act, 1872 defines a void agreement as one not enforceable by law. Agreements are void, for example, where the object or consideration is unlawful (s.23), where there is a mistake of fact by both parties as to an essential matter (s.20), or where they are in restraint of marriage (s.26), restraint of trade (s.27), restraint of legal proceedings (s.28), uncertain (s.29) or by way of wager (s.30). A minor's agreement is void (Mohori Bibee).

A void agreement is void from the start; a contract may also become void later, for example by impossibility (s.56). Benefits received under an agreement discovered to be void must be restored under Section 65.

Example

An agreement to pay money on the result of a cricket match is a void agreement under Section 30 as a wager.

In Indian law

  • Sections 2(g), 23–30, 56 and 65, Indian Contract Act, 1872
  • Mohori Bibee v. Dharmodas Ghose (Privy Council, 1903): a minor's agreement is void

See also

voidable contract · void ab initio · wagering agreement · restraint of trade

Read more in the study notes

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