Void & Voidable Agreements & Contracts | Indian Contract Act in Tamil | CMA Foundation Video Classes

Video Content :
VOID AND VOIDABLE AGREEMENTS
செல்லாததாக உள்ள உடன்பாடுகள் மற்றும்
செல்லாததாக தக்க (தவிர்க்கக்கூடிய) ஒப்பந்தங்கள்

An agreement becomes a contract when it fulfils all essential elements of a valid contract.
In case one or more of the essential element of a valid contract are missing, the contract is void, voidable, illegal or unenforceable.
Let us discuss them one by one.

A. Voidable contract செல்லாததாக தக்க (தவிர்க்கக்கூடிய) ஒப்பந்தங்கள்: An agreement which is enforceable by law at the option of one or more parties thereto but not at the option of other is a voidable contract.
A contract become voidable when it is enforceable at the option of one or more party thereto but not other.
How this happens?
When in one of the essential element of a valid contract, free consent is absent.
Example: A promise to sell his farm to B for ₹ 5.0 lakh. B was not prepared for this but A by force compelled B to sign the agreement.
Here the consent of B was obtained by coercion or fraud. The contract is voidable at the option of B.

B. Void agreement செல்லாததாக உள்ள உடன்பாடுகள்: An agreement not enforceable by law is said to be a void agreement.
A void agreement does not create any legal rights or obligation, hence is null and void ab initio.
C. Void contract செல்லாததாக உள்ள ஒப்பந்தங்கள் : A contract which ceases to be unenforceable by law becomes void when it ceases to be enforceable by law. Void contract is initially a perfectly valid contract but subsequent development turns it into a void contract.

The following agreements have been expressly declared to be void by the Indian Contract Act:
(i) Agreement by a minor or a person of unsound mind. [Sec(11) and Sec(12)]
(ii) Agreement of which the consideration or object is unlawful. [Sec(23)]
(iii) Agreement made under a bilateral mistake of fact material to the agreement. [Sec(20)]
(iv) Agreement of which the consideration or object is unlawful in part and the illegal part cannot be separated from the legal part. [Sec(24)]
(v) Agreement made without consideration. [Sec(25)]
(vi) Agreement in restraint of marriage. [Sec(26)] -
Every agreement in restraint of the marriage of any person, other than a minor, is void.
(vii) Agreement in restraint of trade. [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. The exception is an agreement not to carry on business of which goodwill is sold.
(viii) Agreement in restraint of legal proceedings. [Sec(28)]-
Every agreement —
(a) 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
(b) Which extinguishes the rights of any party thereto, or discharges any party thereto from any liability, under or in respect of any contract on the expiry of a specified period so as to restrict any party from enforcing his rights, is void to that extent.
(ix) Agreements the meaning of which is uncertain. [Sec(29)] –
Agreements, the meaning of which is not certain, or capable of being made certain, are void.
(x) Agreements by way of wager. [Sec(30)] –
Agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to a person to abide by the result of any game or other uncertain event on which any wager is made.
(xi) Agreements contingent on impossible events. [Sec(36)]
(xii) Agreements to do impossible acts. [Sec(56)] –
According to section 56 an agreement to do impossible event is void. Impossibility may be at the time of entering into a contract or subsequent to the formation of the contract but before performance of the contract.
(xiii) In case of reciprocal promises to do things legal and also other things illegal, the second set of reciprocal promises is a void agreement [Sec(57)]