Void Contract
1. INTRODUCTION:
The word void means not binding in law. A contract which cannot be enforced by either party is void contract. It does not create legal relation among parties and void ab-initio. It is not recognized by law.
2. VOID CONTRACT:
An agreement which is not enforceable by law is void.
> Features of Void Contract:
(i) Not enforceable at law. (ii) It creates no legal rights, (iii) No obligations on any party, (iv) No compensation can be paid to any party, (v) Parties are not responsible for performance of contract.
3. CONTRACTS WHICH ARE SPECIFICALLY DECLARED VOID:
The agreements that are expressly declared to be void are as follows.
(I) AGREEMENT IN RESTRAINT OF MARRIAGE:
An agreement In which an adult person is prevented or restraint from marriage is declared void. > Illustration A, agrees with B that she will not marry C. It is a void agreement.
(II) AGREEMENT IN RESTRAINT OF TRADE:
Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind is to that extent is void.
(III) AGREEMENT WHERE BOTH PARTIES ARE AT MISTAKE:
If both the parties of agreement are under mistake as to a matter of Fact, such agreement is void.
(IV) AGREEMENT BY WAY OF WAGER:
An agreement by way of wager is void wager means a bet. A wager may be defined as an agreement to pay money on happening of a specified uncertain event.
(V) UNCERTAINTY:
If the meaning of agreement are not clear and it is not capable of being certain is void by law.
> Illustration:
A agrees to sell B his car for Rupees one lack or 50 thousand. It is not clear which of the two prices is to be given. This agreement is void.
(VI) IMMORAL:
If an agreement is against the moral values of the society it will be void.
(VII) UNLAWFUL OBJECT:
If the object or consideration of an agreement is not lawful, it will make the agreement void.
(VIII) FRADULENT CASE:
If the object or consideration of agreement involves Fraud it will make the agreement void.
(IX) INJURY TO OTHERS:
An agreement the object or consideration of which is the causing of any injury to a property or, person, is void.
(X) AGREEMENT IN RESTA1NT OF LEGAL
PROCEEDING:
Everybody is allowed by law to obtain his legal rights through the legal proceeding. So following agreements are void.
(i) An agreement by which a party is restricted absolutely from taking usual legal proceedings, in respect of any rights arising from a contract.
(ii) An agreement which limit the time within which one may enforce his contract rights.
(XI) IMPOSSIBLE ACTS:
An agreement to do an act impossible in itself is void.
(XII) CONTRACTS OPPOSED TO PUBIC POLICY:
Contracts opposed to public policy are void.
(XIII)CONTRACT FORBIDDEN BY LAW:
If the consideration or object is forbidden by law, it will be void.
5. CONCLUSION:
To Conclude I can say that, void contracts are not enforceable by law. These are not recognized by the law. It does not create any rights on any party and parties are not responsible to perform such contracts.
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About the Author:
Omar Ejaz Advocate is Head of Law Firm “Omar Law & Associates”. He also a Senior Examiner for a major exam board and A-levels Law lecturer at many local institutes.He was educated at Government college Lahore and University of The Punjab. He previously held lecturing at Pakistan College of Law and Quaid-e-Azam Law College in Lahore from 2007-2009 and University Law College in PU from 2008-2009 before becoming a Teacher at Superior College of Law Lahore during 2009. He also Head a firm of Criminal Defence Solicitors in Lahore.
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