BABASAHEB BHEEMRAO AMBEDKAR UNIVERSITY

DEPARTMENT OF RURAL MANAGEMENT

TEACHER INCHARGE- Dr. ABHILASH BABU

AJEET KUMAR

ROLL NO- 4460

VOID CONTRACTS

Section 2 (j) states as follows: “A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable.

Thus a void contract is one which cannot be enforced by a court of law.

ELEMENTS OF A VOID CONTRACT

1. Trading with Enemy

Any trading or business activity with a person who owes allegiance to a Government of a country with whom India is at war without any license from Government of India is VOID.

This is because such a trade would be against the interest of Government of India and people of India.

2. Stifling Prosecution

Any agreement to stifle or prevent illegally any prosecution is void as it would amount to abuse of justice.

3.Champerty & Maintenance

Champerty is bargain whereby one party agrees to assist the other in recovering property with a view to sharing the profit of litigation.

Maintenance is promotion of litigation in which the litigant has no interest.

4.Sale of Public Office & Titles

While appointing a person to certain important and high public office, merit alone should be the criteria.

Any attempt to influence or any agreement to influence anyone in this regard should be seen as an act ‘opposed to public policy’.

5. Agreements in restraint of parental rights

6. Agreements in Restraint of Marriage

Every agreement in restraint of marriage of any person other than a minor, is void.

If a person, being a major, agrees for good consideration not to marry, the promise is not binding.

7. Marriage Brokerage

An agreement to negotiate a marriage for reward is void.

Such marriage brokerage contracts are opposed to public policy.

8. Agreement in Restraint of Legal

Procedures

An agreement in restraint of legal proceedings resulting in restriction of one’s right to enforce legal rights is void.

9. Contracts Interfering with Course of Justice

Any agreement with the object of inducing a judicial officer or administrative officer of the state to act corruptly or not impartially is void.

Example- A agrees to reward B if he abstains from being a witness in a suit against A is void.

10. Agreements in Restraint of Trade

Any agreement through which a person is restrained from exercising a lawful profession, trade or business of any kind is to that extent void.

The object of this law is to protect trade.

11. Wagering agreement

It involves payment of a sum of money upon the determination of an uncertain event.

Example- A agrees to pay Rs 500 to B if it rains and similarly B agrees to pay A if it does not.

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