![NOT DECLARED TO BE VOID
Void agreement is an agreement which is not enforceable by
law.(Sec.2[g])
It implies the rights and liabilities of which cannot be enforced
in the court.
It has no legal significance from the beginning.
[Void ab initio ]
Eg. A agrees to supply liquor to B ,subsequently prohibition Act
comes into force.Thus all agreements to supply liquor become void,
thereafter. Hence B cannot enforce the agreement which is made
before the Act comes into force.The agreement has become void
from the date of the prohibition order come into effect.](https://image.slidesharecdn.com/taneylebppt-170401110059/85/not-declared-to-be-void-n-certainability-possibility-of-performance-2-320.jpg)
![DISCHARGE BY IMPOSSIBILITY
Impossibility of performance of a contract may exist either
[a] At the time of contract
Parties are aware of impossibility of performance of the
contract even at the time of contract.[Void ab initio]
Eg. X agrees to payY Rs.10,000 andY in return promises to
bring the moon from heaven for X. In such a case the
impossibility is known to the parties.
Parties are not aware of performance is impossible at
the time of contract.
Eg. X agrees to sell his car toY , but unknown to both
parties that the car had already been destroyed by fire
even at time of entering into contact.](https://image.slidesharecdn.com/taneylebppt-170401110059/85/not-declared-to-be-void-n-certainability-possibility-of-performance-12-320.jpg)
![[B] Subsequent to formation of contract.
Impossibility that arises subsequent to the formation of
contract is known as subsequent or supervening
impossibility.
Eg. A and B contract to marry each other. Before the
time fixed for marriage A goes mad.This is supervening
factor renders the contact impossible. So the contract
becomes void.](https://image.slidesharecdn.com/taneylebppt-170401110059/85/not-declared-to-be-void-n-certainability-possibility-of-performance-13-320.jpg)
not declared to be void n certainability & possibility of performance
- 1. NOT DECLARED TO BE VOID CERTAINITY AND POSSIBILTY OF PERFORMENCE
- 2. NOT DECLARED TO BE VOID Void agreement is an agreement which is not enforceable by law.(Sec.2[g]) It implies the rights and liabilities of which cannot be enforced in the court. It has no legal significance from the beginning. [Void ab initio ] Eg. A agrees to supply liquor to B ,subsequently prohibition Act comes into force.Thus all agreements to supply liquor become void, thereafter. Hence B cannot enforce the agreement which is made before the Act comes into force.The agreement has become void from the date of the prohibition order come into effect.
- 3. Following agreements are void according to the provisions of the Act. 1. Agreement with minor.(Sec.11) A person who has not attained the age of majority is a minor. According to Indian Majority Act 1875 , a person who has not completed his 18 th year of age is considered to be a minor. Case : Mohori Vs Dharmodas Ghose 2. Agreement entered with mutual mistake(Sec.20) Mistake is misconception or error. It is lack of consensus ad idem . A mistake means that parties intending to do nothing have by intentional error done something else. In general terms it implies a wrong belief about existence of certain facts, goods or subject matter to agreement. Case : RafflesVs Wichelhans
- 4. 3.Agreement in which object of consideration is unlawful (Sec.23) The object of an agreement should be lawful. It must not be illegal or immoral or opposed to public policy. If the object of contract is not lawful, contract is void. Eg. Vishnu agrees to obtain a job for Binoy in Public Service and Binoy as consideration for it promises to pay Rs.50,000 toVishnu. Here the object is unlawful. 4. Agreement in restrain of trade (Sec.27) When the object of an agreement is to interfere with the freedom of a person to carry on any lawful trade or profession the said agreement is agreement in restrain of trade.
- 5. 5. AGREEMENT IN RESTRAINT OF MARRIAGE An agreement in restraint of marriage of any person other than a minor is void (sec.26).The law considers marriage and the married status as the individual and personal right of every man. Freedom of choice in marriage has been guaranteed to every person who is major. If the object of agreement is to restrain a person from marriage, such agreement is void since it is opposed to public policy. Eg . Amar agrees to pay Rs.1,00,000 to Akbar , if he does not marry at all. CASE :LOWEVS PEERS
- 7. 6. Agreement made without any consideration (sec. 25) Consideration = something in return A promise not supported by consideration is called ‘NUDUM PACTUM’(Bare Promise) Principle is stated in Latin terms as “ex nudo pacto non oritur actio” ie. A promise without any consideration is not binding on parties. CASE : Abdul AzeezVs Ali Eg. A promised to B Rs.5,000 for repairing the mosque. B filed a suit against A to enforce the promise. It was held that A who made the promise gained nothing from B , (Repairing the mosque) and B suffered nothing in getting the promise of A. (No gain or no suffering , there is no consideration.
- 8. 8.Agreement in restrain of legal proceedings(Sec.28) An agreement which prohibit a person from taking judicial proceeding in respect of any right arising from a contract is void. Case: Bottling co ltd, v.Times guarantee financials ltd. 9.Uncertain agreements 10. Impossible agreements
- 9. Term of contract should be certain and precise. Should not be vague. Should not create confusion. E.g. A agrees to sell one of his house to B. A has 4 houses .Terms of agreement are not specific.
- 10. CASE LAW TAYLORVs PORTINGTON A agreed to let his house to B for 3 years for at the rate of 85,000 . B stated that he would agree to take the house for the above rent if the house was put into thorough repair and the drawing rooms were decorated “according to the present style”. In this case , though putting the house into through repair is a definite term, decorating the drawing rooms according to the “present style” is not a definite term. It is a vague term, because the term “present style” may mean one thing to A and another to B .
- 11. POSSIBILITY OF PERFORMANCE The agreement must be capable of being performed. An agreement to do an act which is impossible in itself cannot be enforced. Eg. A agrees to pay Rs .1,00,000 to B if B brings his son (who died in last year.) This is an impossible act and is void. Eg. Mr. A agrees with B to discover treasure by magic.
- 12. DISCHARGE BY IMPOSSIBILITY Impossibility of performance of a contract may exist either [a] At the time of contract Parties are aware of impossibility of performance of the contract even at the time of contract.[Void ab initio] Eg. X agrees to payY Rs.10,000 andY in return promises to bring the moon from heaven for X. In such a case the impossibility is known to the parties. Parties are not aware of performance is impossible at the time of contract. Eg. X agrees to sell his car toY , but unknown to both parties that the car had already been destroyed by fire even at time of entering into contact.
- 13. [B] Subsequent to formation of contract. Impossibility that arises subsequent to the formation of contract is known as subsequent or supervening impossibility. Eg. A and B contract to marry each other. Before the time fixed for marriage A goes mad.This is supervening factor renders the contact impossible. So the contract becomes void.