Void agreement / contract ppt

Void Agreement

by-Thakur CollegeFYBMS/D/9051

Abhishek Mishra

Content

Void Agreement

Unenforceable Agreement

Illegal Agreement

What is Fraud

Unilateral Mistake

Mutual Mistake

When can a minor disaffirm a voidable contract?

Void Agreement

Void Agreement : A void agreement has no legal bearing, and is unenforceable by law.

Parties to a voided agreement have no responsibility or legal requirement to act as far as carrying out the terms of the agreement.

• In which cases a contract can be void? Lack of capacity. Mutual mistake of fact. Unlawful consideration or object. Agreements without consideration. Agreements in restraint of trade. Uncertain Agreement. Impossible acts. Agreements contingent on impossible event.

Unenforceable Agreement

Unenforceable Agreement : An agreement which cannot be enforceable in

the court of law because of technical defects are called unenforceable agreements.

Example :

Agreements which is made without registration or non-payment of necessary stamp duty.

Illegal agreement

Illegal agreement: An illegal agreement, under the common law of contract, is one that the

courts will not enforce because the purpose of the agreement is to achieve an illegal end. The illegal end must result from performance of the contract itself.

Example :• agreements to commit crimes or torts• agreements that obstruct legal procedures• agreements that injure public service• agreements made without required license• agreements that restrain trade unreasonably

What is Fraud?

Fraud: False representation or concealment of a material

fact all of the following elements must be present for fraud to exist.

The person making the false representation must know it is false or make it recklessly without regard to its possible falsity.The misrepresentation must be made with the intention of influencing the other person to act upon it.The misrepresentation or concealment must induce action and cause injury to the other party.

Two types of mistakes-

Unilateral mistake One of the parties has an erroneous idea about the facts of a

contract.

For example :- in a contract for the sale of screws, one party may incorrectly believe that the word “screw” refers to Phillips-head screws, when in fact the term refers to standard-type screws. If only one party holds this mistaken belief, but the other is clear on the meaning of “screw”, then this could be called a unilateral mistake.On the other hand, if both parties believed that the word “screw” referred to nails, then this is an example of a mutual mistake. Unilateral mistakes also frequently involve prices, quantities, dates, and the description of goods or services.  

Mutual mistake or bilateral mistake Both parties are wrong about some important facts

For example :- a customer goes to the sample room of an interior decorator to select a carpet and asks the clerk to show him a navy carpet, which he subsequently purchases and takes with him. The sales slip notes that the carpet purchased is navy. When, upon examining the carpet in daylight, the customer discovers that it is black, not navy as he thought when he bought it, a mutual mistake would have occurred, since both the seller and buyer were in error concerning the correct color of the carpet sold. Since there had never been a true and complete meeting of the minds, no mutual assent was actually arrived at, and the buyer would be entitled to return the carpet and obtain a full refund.

When can a minor disaffirm a voidable contract?

A minor can disaffirm a voidable contract any time while still a minor or within a reasonable time after reaching majority

After reaching majority, a person may ratify a voidable contract made while a minor

Ratification the approval of a voidable contract in its entirety

Thank you!!!