Ground of Void Agreement
A void agreement refers to a contract that is not legally binding and therefore holds no legal standing. This occurs when the terms of the agreement are in violation of the law, are against public policy, or contain provisions that are impossible to perform. A ground for void agreement is the reason or circumstance that […]
A void agreement refers to a contract that is not legally binding and therefore holds no legal standing. This occurs when the terms of the agreement are in violation of the law, are against public policy, or contain provisions that are impossible to perform. A ground for void agreement is the reason or circumstance that renders a contract unenforceable.
The first ground for void agreement is illegality. Any agreement that is against public policy or is illegal under the law is considered void ab initio, meaning it was never valid to begin with. Examples of illegal agreements include contracts for the sale of illegal goods or services, contracts that involve criminal activity, or contracts that seek to restrain trade.
Another ground for void agreement is the absence of free consent. This pertains to contracts that are entered into under duress, coercion, or undue influence. For instance, if a person is forced to sign a contract at gunpoint, the agreement is not enforceable because it was not entered into voluntarily. Similarly, if one party has more bargaining power over the other and utilizes this advantage to force the other party into signing an unfavorable contract, the agreement is not valid.
Moreover, agreements with minors are void because they lack legal capacity. A minor is defined as a person who has not yet reached the age of majority, which varies from country to country, but is usually 18 years old. Any agreement entered into by a minor is unenforceable, except for contracts for necessities like food, shelter, and clothing.
Another ground for a void agreement is mutual mistake or misunderstanding. This occurs when both parties enter into an agreement, but they are mistaken about a material fact or circumstance. For instance, if two parties agree to sell a property, but it turns out that the property has already been sold to someone else, the agreement is void because both parties were mistaken about the ownership of the property.
In conclusion, understanding the grounds for void agreement is essential in ensuring that contracts are legally enforceable. It is important to ensure that the terms of the agreement are in conformity with the law and do not contravene public policy. Also, both parties should enter into the agreement with free consent and a proper understanding of the terms and conditions. Failure to adhere to these principles can result in the contract being declared void and unenforceable.