Very good information about VOID AGREEMENTS.

1. VOID AGREEMENT
Submitted To –
Dr.Yogita Mandhanya
Submitted By –
Aditya Gupta
Archesh Patodi
Apoorva Upadhyay
Md. Ali Gori

2. What Is An Agreement?
 A meeting of minds with the understanding and acceptance of reci
procal legal rights and duties as to particular actions or
obligations, which the parties intend to exchange; a mutual assent to
do or refrain from doing something; a contract.
 The writing or document that records the meeting of the minds of t
he parties. An oral compact between two parties who join
together for a common purpose intending to change their rights and
duties.

3. Types Of Agreement/Contract

4. What Is Void Agreement?
 “An agreement not enforceable by law is said to be void” [Sec.2(g)].
 Thus a void agreement does not give rise to any legal consequences
and is void ab-initio (from the beginning). In the eye of law such an
agreement is no agreement at all from its very inception.

5. Expressly Declared Void Agreements
The last essential of a valid contract as declared by Section 10 is that it must not be
one which is ‘expressly declared’ to be void by the Act. Thus, there arises a question,
as to what are ‘expressly declared’ void agreements? The following agreements have
been ‘expressly declared’, to be void by the Indian Contract Act:
 Agreements in restraint of marriage (Sec. 26).
 Agreements in restraint of trade (Sec. 27).
 Agreements in restraint of legal proceedings (Sec. 28).
 Agreements the meaning of which is uncertain (Sec. 29)
 Agreements by way of wager (Sec. 30).
 Agreements contingent on impossible events (Sec. 36).
 Agreements to do impossible acts (Sec. 56).

6. Agreements in Restraint of Marriage
(Sec.26)
 Sec.26 “Every agreement in restraint of the marriage of any person,
other than minor, is void.”
 Difference between a positive promise to marry a particular person
And but restrictive agreement containing a promise not to marry
anybody else.
 Lowe v. Peers, (1768) : Mr. Peers promised Mrs. Catherine Lowe, that
he would not marry anyone other than Mrs. Lowe and promised further
to pay, Mrs. Lowe, 2000 pounds on default.

7. Agreements in Restraint of a Trade
(Sec.27)
Sec.27 “Every agreement by which anyone is
restrained from exercising a lawful profession, trade or
business of any kind, is to that extent void.”

8. Agreements in Restraint of Legal
Proceedings (Sec.28)
“Every agreement, by which any party thereto is restricted absolutely
from enforcing his rights under or in respect of any contract, by the
usual legal proceedings in the ordinary tribunals, or which limits the
time within which he may thus enforce his rights, or which provides
for forfeiture of any rights arising from contract, if suit is not brought
within a specified time, is void to the extent.
Baroda Spinning Co. Ltd V/s Satyanarayan Marine & Fire
Insurance Co. Ltd.

9. Agreements in Restraint of Legal
Proceedings (Sec.28) {cont…}
This Sec. applies to only rights arising from contract. Not to
cases of crime or tort.
Does not affect the law relating to arbitration.
Does not affect an agreement “not to file an appeal”
Select one of the two courts.

10. Agreements The Meaning of Which Is
Uncertain (Sec.29)
According to Section 29, Agreements, the meaning of which
is not certain, or capable of being made certain, are void.
Example: Amar agrees to purchase a horse from Akbar for ₹
20,000. He also agreed to pay 1,000 more, if the horse proved
lucky. It was held that the agreement was void. It was
observed that the court had no machinery to determine what
luck hirse had bought to the buyer.

11. Agreements By Way of Wager
(Sec. 30)
 It is an agreement under which money or money’s worth is payable by one
person to another on the happening or non-happening of future uncertain event.
 A WAGER is a game of chance in which winning or losing wholly depends on a
specified uncertain event.
 It is an agreement of betting.
 Wagering Agreements are considered Illegal in the states of Maharashtra and
Gujarat. In rest states it is considered Void.

14. Agreements Contingent on Impossible
Events (Sec. 36)
As per Section 36 in The Indian Contract Act, 1872
 Agreements contingent on impossible event void are Contingent agreements to
do or not to do anything, if an impossible event happens, are void, whether the
impossibility of the event is known or not to the parties to the agreement at the
time when it is made.
 Example: A agrees to pay B 1,000 rupees if two straight lines should enclose a
space. The agreement is void. (a) A agrees to pay B 1,000 rupees if two straight
lines should enclose a space. The agreement is void."