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8/3/2019 Void Agreements & Contingent Contracts(2)
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VOID AGREEMENTS
By Shweta Bambuwala
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Void Agreements:-
A Void Agreement is not enforceable
by Law.
i.e. NO LEGAL EXISTANCE
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Types of Void Agreements:-1. By Incompetent Persons
2. Under Mutual Fact
3. Under Mistake as to Law not in Force
4. Consideration is Unlawful.
5. Consideration or Object of which is Unlawful
6. Without Consideration7. In Restraint of Marriage
8. In Restraint of Trade
9. In Restraint of Legal Proceedings
10. The Meaning is Uncertain
11. By way of Wages12. Contingent on an Uncertain Future event
13. Contingent on an Impossible event
14. To do an Impossible event
15. To do an act which subsequently becomesimpossible
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Agreement in Restraint of Marriage:-
Except minor it is void (sec.26)
Right to get married
Right to exercise choiceFor minor does not apply till the
attainment of majority
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Agreement in Restraint of Trade:-
Every agreement by which anyone
is restraint from exercising a Lawful
profession trade or business of anykind, is to that extent void. (sec.27)
Usually such Trades are contrary to
public policy
Divisible agreements can be carried
on for part of agreement which is valid
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Agreements by Way of Wager:-
Void
No suit enforceable for recovery of anything alleged to be won««..
Wager
An agreement between two parties to theeffect that if a given uncertain eventhappens, one party shall pay certain sumto other party.
Mutual chance of gain & loss is mustEssence is one party to win & other to lossupon a future event
Betting agreements are wageringagreements.
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Essentials:-
Uncertain event
Mutual chance of gain loss Promise to pay money or money's worth
No control over happening of event
Exceptions:-
Horse racing ± not illegal as per sec.294(a)
Speculation is not wagering contract
Insurance contract
Games of skill or athletic competitions
Cross literacy competitions
Share Market Transactions
Chit funds us declared by court of Law
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Contingent Contract
A Contract to do or not to do
something if some event is collateralto such contract, does or does not
happen (sec 31).
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Essentials
1.Existence of Contingency
2.Contingency must be uncertain
3.Event must be collateral
Ex:- Fire Insurance
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Rules regarding ContingentContract
Enforcement of contract contingent on,
H appening of a Future Uncertain Event
Non happening of a Future Uncertain Event
(Negative Condition) Future Conduct on living person
Specified event happening within fixed time
Specified event not happening within a fixed
time
Impossible events
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Quasi Contracts
Quasi Contract is not a contract at all.No contract in fact but created by law.
Also termed as ³ Certain Relations resembling those
created by law ³.
Also known as implied contracts as obligation isimplied
Principles of quasi contracts
Duty is foundation of quasi contracts A person should not be allowed to enrich himself at
the expense of another
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Types of quasi Contracts
Necessaries supplied to incompetent
person
Payment by an interested person
Liability to pay for non gratuitous acts
Conditions to be fulfilled are,
Thing must be done lawfully
No intention to act gratuitously
person must enjoy benefit of the act
Finder of goods
Mistake or coercion