essay on void agreement

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Void Contract Definition and What Happens

Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest.

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A void contract is a purported agreement that is unenforceable from the moment it is created.

A void contract differs from a voidable contract. While a void contract was never legally valid and will never be enforceable, voidable contracts may be valid until one party formally rejects the terms for reasons allowable in the contract or by law. Voidable contracts may also be legally enforceable once any defects in the contract are corrected. That said, void and voidable contracts can be nullified for similar reasons.

Key Takeaways

• A void contract is an agreement that is illegitimate and unenforceable from the moment it is created.
• A void contract differs from a voidable contract, although both may be nullified for similar reasons.
• A contract may be deemed void if it is not enforceable as it was originally written.
• Void contracts can occur when one of the parties can be found incapable of fully comprehending the implications of the agreement, like when a person has intellectual disabilities or is inebriated.
• Agreements involving minors or illegal activities are also generally void.

Understanding Void Contracts

A contract can be deemed void if it's not enforceable as originally written. In these cases, void contracts or “void agreements" are illegal or against fairness or public policy. While a valid contract has all the essential elements required by law, a void contract is missing one or more of these or is flawed in some other way, making it impossible to enforce.

Enforceable contracts must meet certain criteria: first, there has to be a clear offer from one party and an acceptance of it by another. Second, there must be what's called “consideration": something of value must be exchanged between the parties. Third, the contract must have some legal purpose. Fourth, the contract's terms must be clear, certain, and possible to perform. Next, the parties must also have the legal capacity to enter into contracts: they are of sound mind, not under the influence of drugs or alcohol, and of legal age. Lastly, some contracts must be in writing to be enforceable, depending on the jurisdiction, especially for major transactions like selling real estate.

Given this background, here are some instances when a contract would be void:

• Illegal : Contracts for criminal activities are considered void. For instance, a contract to sell black-market drugs would be void.
• Impossible : Contracts for actions that are impossible to do are void. For instance, you can't sign contracts for someone to procure your daughter a unicorn for her fourth birthday party or predict next year's exact returns for the S&P 500.
• Lack of capacity : If a party to the contract cannot understand the contract, such as a minor or person under the influence of alcohol, the contract may be void.
• Lack of assent : Contracts must have a genuine agreement. If a contract is formed under duress or threats, undue influence, or fraud, it's generally void.
• Too vague : If the contract terms are too imprecise to be enforceable, the contract may be void. Suppose you make a contract with a gardener who agrees to plant “some trees" in your yard by a specific date. The term “some" can mean different things to you and the gardener about the number of trees to be planted, making the contract difficult to enforce.

In a financial or business situation, understanding the meaning of void contracts is crucial to confirming that agreements are legally sound, which can help mitigate the risks of unenforceable contracts.

Voidable Contract vs. Void Contract

While a void contract is usually considered not enforceable at its inception, a contract may be voidable if the contract's circumstances are questionable. Examples of voidable contracts include when one party is allowed to cancel the contract because of the other party's illegal or unfair (voidable) actions.

This includes agreements where one party withheld information or intentionally provided inaccurate information. Laws for certain types of contracts require disclosing specific kinds of information. If this is not done—if the seller of a house fails to tell you about the sinkhole set to devour the home at any moment—the contract could be voidable but not automatically void since both parties might wish for the agreement to go forward.

For instance, if a contract is entered into with a minor, the minor has the legal right to void the contract until reaching the age of majority, even if the terms bind the other party. In this case, the agreement in some jurisdictions might be valid until the minor decides to void it, making it a voidable, but not void, contract.

Thus, in a voidable contract, the party subject to duress, fraud, undue influence, or other such factors can choose to enforce or void the contract. Voidable contracts have this key element: the choice or escape route for the party subjected to one of the elements above.

Can a Void Contract Become Valid If It's Corrected?

No, a void contract can't be made valid merely by mutual agreement to correct the problems that made it void in the first place. Once a contract is deemed void, it's like it never existed as a matter of law.

How Can You Nullify a Voidable Contract?

A contract can be nullified if it contains terms that are considered illegal or unreasonable in a certain jurisdiction. In addition, courts may also invalidate a contract if it is found that either party was incapable of entering a legal contract at the time it was signed. For example, most legal contracts are not enforceable if the signatory has not reached the age of adulthood.

Void contracts are unenforceable because they have some fundamental flaws. However, certain jurisdictions allow for “ severability ," where the problem parts of a contract are removed and the remaining sections are enforceable. This is more likely to be the case if the flawed aspects of the agreement are easily separable from the rest.

How Do You Void a Check?

You can void a check by writing “VOID" in large letters on both sides of the check. This makes it effectively impossible for someone else to use the check to make a deposit.

What Happens If I've Done My Part for a Contract Then Considered Void?

When a contract is deemed void, it's as if the contract never existed legally speaking. Hence, anything you did under the void contract is generally not recoverable, and you can't seek restitution. However, it's best to consult with a legal professional about your particular situation to understand the possible remedies open to you.

“Void" is the legal term for a contract that cannot be enforced. This may be because the original contract contained aspects not allowable under the law. A contract may also be considered void if the terms are vague or impossible to perform.

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Void Valid and Voidable Contracts

Void contracts are not contracts. In most cases, a void contract misses one or more essential elements that would make it valid. 3 min read updated on February 01, 2023

Void, valid, and voidable contracts are agreements that can briefly be described as follows:

• Void: Not an actual contract and is unenforceable
• Valid: Legally binding and enforceable in a court of law
• Voidable: Valid and enforceable but contains a flaw that may make it void

About Void Contracts

Void contracts are not contracts. In most cases, a void contract misses one or more essential elements that would make it valid. Because it's not an actual contract, neither party to it has to do anything to terminate it.

When the contract is created, it may be valid if it meets all required conditions for validity, such as capacity and free consent. However, an impossibility to act or a future change in the law, making performance impossible, makes the contract void, ceasing the enforceability. When a contract is opposed to public policy, that also ceases enforceability. Neither party can sue for non-performance.

Features of a void contract include the following:

• It's not legally enforceable .
• It imposes no obligations on the parties.
• It fails to create legal rights.
• It's against the law.
• Neither party shall receive compensation.

Examples of void contracts include the following:

• Contracts with a party who's not mentally or legally competent, such as someone with a mental illness or a minor
• Contracts that involve illegal actions, such as committing a crime
• Contracts requiring an impossible performance or the occurrence of an impossible event
• Contracts that are too unfair
• Contracts restraining certain activities, such as the right to work or the right to choose one's spouse

Using these criteria, a contract to kill is void because its purpose is illegal.

About Voidable Contracts

Voidable contracts have the necessary elements to be enforceable, so they appear to be valid. However, they also have some kind of flaw that makes it possible for one or both parties to void it. A voidable contract may start out being legally binding but become void. It's still considered valid if an injured party doesn't take action.

Most sales contracts include contingency clauses, making them voidable.

To enforce the legality of a voidable contract, one of the parties has to use its option to enforce it. Either party has the legal authority to perform or not perform to the contract. Typically, only one of the parties is bound to the terms. The party that isn't bound may cancel the contract, making it void.

The primary difference between void and voidable contracts is that a void contract can't be legally performed, while a voidable agreement can still be performed, as long as the unbound party doesn't void it prior to performance.

Voidable contracts have the following features.

• One or both parties has the option to enforce it.
• A party that's been defrauded, coerced, or misled into signing the contract can object to its validity.
• Either party has the option to revoke consent.
• Contracts entered into using undue influence, fraud, misrepresentation, or coercion are voidable contracts.

Examples of voidable contracts include the following:

• Contracts involving a minor as one of the parties (minors can walk away from contracts)
• Contracts that tricked or forced a party into them
• Contracts involving an incapacitated party at the time of signing; incapacitated includes being drunk, delusional, or insane

Just because someone enters into a contract under duress or fraud doesn't make it void. It just makes it voidable.

What Makes a Valid Contract?

Valid contracts have all the required elements and are legally enforceable in court. A valid contract creates legal obligations between contractual parties. It gives a party cause to compel another party to do or not do something.

Parties are legally responsible for performance in the contract. If one party commits breach of contract, the other can take the case to court.

In many cases, signing on the dotted line obligates you to perform to the contract, but there are instances that cause contracts to be unenforceable in a court of law. In the field of contract law , there are many variables that go into making a contract valid or not. Things may become complicated when you try to understand what makes an agreement legally binding . If you have any questions about contracts, consult with a professional who's skilled in that arena.

If you need help with contracts, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Content Approved by UpCounsel

• The Difference Between Void and Voidable Contracts
• What Is Voidable Contract? Everything You Need to Know
• Void Contract
• Examples of Valid Void and Voidable Contracts
• Voidable Contract
• What Makes a Contract Voidable?
• Valid and Void Contract
• Null and Void Contract
• How to Void a Contract Legally: Everything you Need to Know
• How to Void a Contract

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A FIELD WORK ON " VOID AGREEMENTS " NATURE AND CONSEQUENCES

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Understanding Void Agreements: Legal Concepts and Case Laws

Introduction to void agreements.

Void agreements represent contracts that lack enforceability under legal jurisdiction. As per Section 2(g) of the Indian Contract Act, a void agreement is defined as “an agreement not enforceable by law.” Consequently, parties entering such agreements are bereft of legal recourse in case of disputes or breaches.

Genesis of Void Agreements

Void agreements materialize due to the non-fulfillment of conditions stipulated under Section 10 of the Indian Contract Act. These conditions include the absence of consideration, agreements against public policy, and agreements tainted by illegality or incapacity.

Void Agreements under the Indian Contract Act

The Indian Contract Act expressly designates certain agreements as void:

• Agreements by Minors or Persons of Unsound Mind (Section 11)
• Agreements with Unlawful Consideration or Object (Section 23)
• Agreements Based on Bilateral Mistake of Material Fact (Section 20)
• Agreements Without Consideration (Section 25)
• Agreements in Restraint of Marriage (Section 26)
• Agreements in Restraint of Trade (Section 27)
• Agreements in Restraint of Legal Proceedings (Section 28)
• Agreements of Uncertain Meaning (Section 29)
• Wagering Agreements (Section 30)
• Contingent Agreements on Impossible Events (Section 36)

Case Laws: Illustrating Void Agreements in Legal Practice

Madura municipality v. raman servai.

In this case, the court elucidated that agreements not adhering to statutory provisions, such as those void ab initio, fall within the purview of Section 65 of the Contract Act. Consequently, parties to such agreements are liable to restore any benefits accrued under void agreements.

A.I Construction Pvt. Ltd v. Goodwill Ltd.

This case underscored the provisions of Sections 24 to 30 of the Indian Contract Act, delineating the contours of void agreements. It emphasized that agreements falling outside the purview of these statutory clauses do not qualify as void agreements.

Sukhpal Singh v. State of Rajasthan & Others

Here, the court deliberated on the distinction between void and voidable transactions, referencing Sections 20, 23, 26, 27, 28, and 29 of the Contract Act. It elucidated that transactions deemed void are destitute of the legal effect and are thus unenforceable under the law.

V. Joseph v. Valsamma Varghese

This case elucidated that agreements conferring jurisdiction on courts in contravention of legal provisions, as per Section 2(g) of the Indian Contract Act, are deemed void. Parties cannot confer jurisdiction on courts through agreements that violate legal norms.

Conclusion: Implications of Void Agreements in Legal Discourse

Void agreements, as delineated by the Indian Contract Act, serve as guardrails against transactions contravening legal principles or public policy. Courts uphold the sanctity of contracts by judiciously examining statutory provisions and case laws while safeguarding the interests of parties. Understanding the nuances of void agreements is paramount for legal practitioners and stakeholders alike, ensuring compliance with legal precepts and fostering equitable resolution of disputes.

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FAQs: Void Agreements

1. What defines a void agreement under the Indian Contract Act?

Ans: A void agreement, as per Section 2(g) of the Indian Contract Act, is not enforceable by law. It lacks legal validity, and parties to such agreements cannot seek legal remedies.

2. What are the common reasons for an agreement to be declared void?

Ans: Agreements may be deemed void due to various reasons outlined in the Indian Contract Act, including lack of consideration, unlawfulness of the object or consideration, bilateral mistake of fact, absence of consideration, restraint of marriage or trade, uncertainty, wagering, or impossibility of performance.

3. Can you provide examples of case laws related to void agreements?

Ans: Several case laws illustrate applying legal principles regarding void agreements. For instance, Madura Municipality v. Raman Servai highlights the consequences of agreements being void ab initio, while A.I. Construction Pvt. Ltd v. Goodwill Ltd underscores the specific provisions of Sections 24 to 30 of the Indian Contract Act concerning void agreements. Additionally, cases like Kuju Collieries Ltd. v. Jharkhand Mines Ltd. and Sukhpal Singh v. State Of Rajasthan & Others offer insights into the implications of agreements becoming void due to subsequent events or challenges to their legal enforceability.

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Federal appeals court upholds ruling that Zion Williamson’s 2019 contract with an agent was void

New Orleans Pelicans forward Zion Williamson shouts from the bench during the second half in Game 2 of the team’s NBA basketball first-round playoff series against the Oklahoma City Thunder, Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

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RICHMOND, Va. (AP) — A federal appeals court has upheld a 2021 ruling that NBA star Zion Williamson’s contract with a marketing agent was void because the agent was not licensed in North Carolina when the two entered an agreement in 2019.

Florida-based agent Gina Ford had sought $100 million from Williamson, claiming the former Duke All-American improperly broke an agreement she had to represent him in endorsement deals.

A federal judge in North Carolina found that Ford was not a licensed agent in that state at the time she entered an agreement with Williamson and that their contract did not comply with key requirements outlined by the state’s sports agent law. The fact she wasn’t licensed shielded Williamson from any penalties associated with breaking the contract.

The 4th U.S. Circuit Court of Appeals agreed with that ruling in an opinion written by Judge Albert Diaz and released Monday.

Williamson played his freshman season at Duke, and the New Orleans Pelicans made him the No. 1 pick in the 2019 NBA draft. Williamson filed a federal lawsuit in North Carolina the month of the draft to terminate a five-year contract with Ford’s agency after moving to Creative Artists Agency LLC.

AP NBA: https://apnews.com/hub/nba

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Three men to plead guilty in the killing of Boston gangster James 'Whitey' Bulger

(Reuters) - Three men accused in the beating death of one of Boston's most notorious mobsters, James "Whitey" Bulger, have reached plea deals with federal prosecutors over their roles in the 2018 killing inside a federal prison, according to court papers.

Fotios “Freddy” Geas, Paul DeCologero and Sean McKinnon will change their pleas to guilty after coming to agreements with prosecutors, according to court documents filed in the Northern District of West Virginia on Monday. The men also asked the court to schedule a sentencing hearing.

Details of the plea agreements were not disclosed in the court documents.

Federal prosecutors along with Nathan Chambers, an attorney for Geas, declined to comment when reached by email by Reuters. Lawyers for the other men were not immediately available for comment.

All three men were indicted with conspiracy to commit murder in August 2022, four years after Bulger's bloodied body was discovered wrapped in a sheet in his prison cell in a high-security federal prison in West Virginia.

Geas and DeCologero, who were also indicted with murder, were accused of striking Bulger multiple times in the head with a padlock wrapped in a sock. McKinnon, who allegedly acted as a lookout during the Oct. 30, 2018, killing, was also charged with making false statements to a federal agent.

Bulger lived a double life as one of Boston's most notorious mobsters while also acting as a secret FBI informant. He went on the run for 16 years after he was tipped off by his FBI handler about a pending racketeering indictment against him.

Bulger was captured in California in 2011. Two years later he was convicted for 11 murders and other offenses and was sentenced to life in prison.

He was 89 years old and five years into his term when he was killed. The murder took place hours after he had been transferred from a prison in Florida.

Confined to a wheelchair, Bulger was beaten so badly that blood was found coming from his ears, prison staff said at the time. Two men were seen on surveillance footage entering his cell, according to those accounts.

At the time of Bulger's death, Geas was serving a life term for the 2003 murders of Genovese crime family boss Adolfo "Big Al" Bruno and associate Gary Westerman. DeCologero was serving a sentence of life plus 25 years for murder, racketeering and firearms offenses.

McKinnon was serving an eight-year sentence for stealing guns from a Vermont firearms store. For at least part of that time, he shared a cell with Geas.

(Reporting by Brendan O'Brien in Chicago and Rich McKay in Atlanta; Editing by Michael Erman)

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• After that, you sign the contract and during the indicated days stay in touch with the employee of the company.
• Then you receive the file, read it attentively and transfer a certain amount to the company's bank card. After payment, the client downloads the document to his computer and can write a review and suggestions.

On the site Essayswriting, you get guarantees, thanks to which you will be confident and get rid of the excitement. The client can ask any questions about the writing and express special preferences.

Courtney Lees

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