Types of Void Agreements

Understanding the Different Types of Void Agreements

Contracts and agreements are a critical part of conducting business. However, not all contracts or agreements are valid. Some may be void at their inception or become void over time. In this article, we`ll explore the different types of void agreements.

First, it`s essential to understand what a void agreement is. A void agreement is one that is not legally enforceable. It is considered null and void right from the start, and neither party is obligated to fulfill the terms of the agreement.

1. Agreement made by a minor

An agreement made by a minor (someone under 18 years of age in India) is considered void. The reason behind this is that a minor is not legally competent to enter into a contract. However, if a minor enters into a contract that is beneficial to them, it can be enforced if they ratify it after reaching the age of majority.

2. Agreement made by a person of unsound mind

An agreement made by a person of unsound mind is void. A person who is not of sound mind cannot fully understand the terms and conditions of the agreement and cannot make an informed decision. In such cases, the agreement is considered null and void.

3. Agreement made under coercion

If an agreement is made under coercion, it is void. Coercion is defined as the use of force or the threat of force to make someone do something they wouldn`t do otherwise. If an agreement is made under these conditions, it is not legally enforceable.

4. Agreement made under undue influence

An agreement made under undue influence is also considered void. Undue influence is when a person in a position of power over another uses their influence to make them agree to a contract.

5. Agreements that are illegal in nature

An agreement that involves an illegal activity is void. For example, if two people enter into an agreement to carry out an illegal activity, such as smuggling drugs, the agreement is considered null and void.

In conclusion, understanding the different types of void agreements is essential in ensuring that your contract is legally enforceable. Avoiding any of the above types of void agreements will help prevent any issues in the future, ensuring that your business transactions are smooth and successful.