VOID AGREEMENTSVOID AGREEMENTS

DEFINITIONDEFINITION

According to Sec. 2(g), a void According to Sec. 2(g), a void agreement is one which is not agreement is one which is not enforceable by law. Such an enforceable by law. Such an agreement does not give rise to any agreement does not give rise to any legal consequences & is void ab legal consequences & is void ab initio.initio.

Void agreementsVoid agreements1.1. Agreements by incompetent parties (Sec. 11).Agreements by incompetent parties (Sec. 11).2.2. Agreements made under a mutual mistake of facts (Sec. 20).Agreements made under a mutual mistake of facts (Sec. 20).3.3. Agreements the consideration or object of which is unlawful (Sec. 23).Agreements the consideration or object of which is unlawful (Sec. 23).4.4. Agreements the consideration or object of which is unlawful in part (Sec. 24).Agreements the consideration or object of which is unlawful in part (Sec. 24).5.5. Agreements made without consideration (Sec. 25).Agreements made without consideration (Sec. 25).6.6. Agreements in restraint of marriage (Sec. 26).Agreements in restraint of marriage (Sec. 26).7.7. Agreements in restraint of trade (Sec. 27).Agreements in restraint of trade (Sec. 27).8.8. Agreements in restraint of legal proceedings (Sec. 28).Agreements in restraint of legal proceedings (Sec. 28).9.9. Agreements the meaning of which is uncertain (Sec. 29).Agreements the meaning of which is uncertain (Sec. 29).10.10. Agreements by way of wager (Sec. 30).Agreements by way of wager (Sec. 30).11.11. Agreements contingent on impossible events (Sec. 36).Agreements contingent on impossible events (Sec. 36).12.12. Agreements to do impossible acts (Sec. 56).Agreements to do impossible acts (Sec. 56).13.13. In ease of reciprocal promises to do things legal and also other things illegal, the In ease of reciprocal promises to do things legal and also other things illegal, the

second set of reciprocal promises is a void agreement (Sec. 57).second set of reciprocal promises is a void agreement (Sec. 57).

Essentials of a wagering Essentials of a wagering agreementagreement

1.1. Promise to pay money or money’s worth.Promise to pay money or money’s worth.

2.2. Uncertain event.Uncertain event.

3.3. Each party must stand to win or lose.Each party must stand to win or lose.

4.4. No control over the event.No control over the event.

5.5. No other interest in the event.No other interest in the event.

Effects of wagering agreementEffects of wagering agreement

Suit to recover money deposited.Suit to recover money deposited.

Principal and agent.Principal and agent.

Collateral transactionCollateral transaction

Void contractsVoid contracts

1.1. A contingent contract to do or not to do A contingent contract to do or not to do something on the happening of an event something on the happening of an event becomes void.becomes void.

2.2. When the party whose consent is not free When the party whose consent is not free repudiates the contract.repudiates the contract.

3.3. A contract becomes void by supervening A contract becomes void by supervening impossibility or illegality.impossibility or illegality.

RestitutionRestitution

When a contract becomes void, the party who When a contract becomes void, the party who has received any benefit under it must restore has received any benefit under it must restore it to the other party or must compensate the it to the other party or must compensate the other party by the value of the benefit. This other party by the value of the benefit. This restoration of the benefit is called restitution.restoration of the benefit is called restitution.