Void agreements are those agreements that are not enforceable by law. There are various features that define a void agreement, and understanding them is essential to avoid legal complications. In this article, we will discuss the features of a void agreement and their significance.
1. Absence of legal enforceability: The primary feature of a void agreement is that it is not legally enforceable. Such agreements are not recognized as valid, and they do not have any legal consequences. Consequently, any attempt to enforce them in a court of law is futile.
2. Contrary to law: A void agreement is one that is contrary to the law of the land. It is illegal and goes against the public policy of the country. The terms and conditions of the agreement are illegal, unlawful, or immoral, and hence, it is void ab initio (void from the beginning).
3. Lack of free consent: An agreement is void if it is not made out of the free consent of the parties. This can happen in various forms such as coercion, undue influence, fraud, or misrepresentation. If the parties are not genuinely willing to enter into the agreement, it is voidable.
4. Absence of consideration: Consideration is an essential element of a valid contract. It refers to a promise made by one party in return for something from the other party. In a void agreement, there is no consideration, and hence, it is not binding.
5. Incapacity of parties: In some cases, the parties entering into the agreement may not have the legal capacity to do so. For instance, a minor, an insolvent person, or a mentally unsound person cannot enter into a binding agreement. If such a person enters into an agreement, it is void.
6. Agreement against public policy: Any agreement that goes against the public policy of the country is void. For example, an agreement to commit a crime, an agreement to promote racial discrimination, or an agreement to cover up a fraud are all against public policy.
7. Void and voidable agreements: A void agreement is one that is not enforceable, right from its inception. A voidable agreement, on the other hand, is one that is valid until it is rescinded by one of the parties. The party that is entitled to rescind the agreement can do so and render the agreement void.
In conclusion, a void agreement is an agreement that is not enforceable by law, and it lacks the essential elements of a valid contract. Any attempt to enforce such an agreement in a court of law is worthless. Understanding the features of a void agreement is crucial to avoid entering into illegal contracts that can result in undesirable legal consequences.