Agreement is defined as a promise and every set of promises forming consideration for each other. When an agreement becomes enforceable by law it is known as a contract. Agreement which are not enforceable by law are void agreement. Such agreements are void ab-initio which means Void from the Beginning.
There are few agreements which, when made, are valid but later, due to change in conditions, the contracts becomes unenforceable and they are known as Void Contract.
Agreements by or with a person who lacks competence to contract
Agreement with Minor, Unsound mind and people barred by law are void as they are not competent to contract
Agreements which are entered into through a mutual mistake of fact between the parties
In case of mutual mistake of fact there is lack of Consensus Ad Idem so a valid Agreement does not comes into existence
Agreement, the object or consideration of which is unlawful is void
Any agreement made for illegal consideration or objective cannot form a Valid Agreement.
Agreement made without return consideration
Agreements without return consideration are void, though there are certain exception to the rule.
Agreement in restraint of marriage
Any agreement that creates a restrain on marriage of a person other than minor is void.
Agreements which creates restraint of trade
Agreement that restrain a person to carry on any lawful business or profession is a void agreement. Though there are certain exceptions to this rule as well and there may be an agreement restraint of trade which is enforceable.
Agreements for restraint of legal proceedings.
Any agreement that puts a restrain on legal proceeding is void, however parties may enter into arbitration agreement.
Wagering agreements are void in India
Wagering agreement is an agreement entered between the parties where parties agree to pay money on monies worth on happening on an uncertain event and neither party have any control over the event or any other interest included other than the amount promised to be paid or received.
Impossible agreement which may be Physically or legally impossible
All Agreement that are legally or physically impossible are void.
Agreement the meaning of which is uncertain are void
Agreement in which terms and conditions are not certain and are vague are void.
Contingent contracts are defined as those contracts whose performance is based on future event and in case those events become impossible they are void.
Section 31 of The Indian Contract Act, 1872 defines contingent contract as contingent contract is a contract to do or not to do something, if some event, collateral to such contract does or does not happen.
ESSENTIALS OF CONTINGENT CONTRACT ARE AS FOLLOWS
Performance of the contract must be dependent on a future event
Future event on which performance of contract is dependent should be collateral to the contract
Future event on which performance of contract is dependent should be uncertain.
Contingency can be dependent on the act of the third party however it should not be dependent on the parties in the contract.
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