What is a void contract

What is a void contract? 

What contracts are specifically declared void contracts under the contract act 1872.

Introduction

The word void means “not binding in law”. A contract which cannot be enforced by any party is void. It cannot create a legal relationship between the party because it is not recognized by the law. A lot of reasons which makes such kind of contracts void and no one can take legal action against other on the behalf of void contract

Definition of Void contract

An agreement which is not enforceable by law is called void contract.

Explanation

The word void means “not binding in law” A contract which cannot be enforced by law even no party can take legal action against one another.

Reasons of void contract

Following are the main reasons when contract becomes void

When contract is illegal from the moment it is made

Contract was legal but declared unacceptable by the courts because it violates fundamental principles
It becomes void due to the changes in law 

Even it has been fully performed

Features of void contract

Following are the features of void contract

Enforceability by law

A void contract is not enforceable by law because it not fulfill the requirements of a valid contract

Compensation

In void contract no compensation can be paid by any party because it not fulfill the requirements of a valid contract

Nature of contract

According to its nature because it is against the public policy that’s why it is a void contract

No legal rights

A void contract does not create any legal rights because it not fulfill the requirements of a valid contract

No obligation on any party

A void contract does not create any obligation on any party because it not fulfill the requirements of a valid contract

Contracts which are specifically declared void

Following are the contract which declared to be void

Agreement in restraint of marriage

Any contract which restraints any adult person from marriage for whole life or for specified time is void contract.

Illustration

If A agrees with B that she will not marry C it is a void contract

Agreement in restraint of trade

Any agreement which restraint to any businessman from establishing lawful business is void contract

Agreement in restraint of legal proceeding

Each and every body is allowed to obtain his legal rights through the legal proceeding. So following agreement is void
Any agreement which restrains from taking legal proceedings, while law enable the same person to take action against any one

Agreement when both parties are at mistake

Any agreement in which both the parties are under mistake as to a matter of fact, such agreement is void contract

Agreement by way of wager

Literally the word ‘wager’ means ‘a bet’ something stated to be lost or won on the result of a doubtful issue, and, therefore, wagering agreements are nothing but ordinary betting agreements and it is void contract

Uncertainty

Any agreement, whose meaning are not clear and certain is called void contract

Example

A agreement to sell his car to B for R.s 1 lakh or 50 thousand. It is not clear which amount will be given. In such case contract is void

Immoral

Any agreement which is against the moral values of the society, in this case it is void contract

Element of fraud

Any agreement which has element of fraud, in such case it a void contract

Against public policy

Any agreement which is against the public policies, is a void contract

Injury to others

Any agreement which become cause of an injury to other person or property, in this case the contract will be void

Unlawful object

Any agreement which is in itself unlawful, it will make the contract unlawful

Impossible act

Any agreement in which such act is mentioned which is impossible to perform, it will make to contract void

Contract forbidden by law

If the object of an agreement is forbidden by the law, it will be void contract

Conclusion

Void contracts are not enforceable by law, because these are not recognized by the law. It does not create any rights for any party and the party is not responsible to perform such contracts. So void contract is not contract in the eye of law

Ikyan Shah (Advocate High Court) ================================ +92-302-6111222 ================================ WhatsApp: https://whatsapp.com/channel/0029VaCJ8BT8fewjugv9FS1x Mentoga: https://mentoga.com/ikyanshah LinkedIn: https://www.linkedin.com/in/ikyanshah/ Facebook: https//www.facebook.com/ikyanshah TikTok: https://www.tiktok.com/@ikyanshah Instagram: https://www.instagram.com/ikyanshah