How to identify if an Agreement is void?
Let me give you a real-life example that inspired me to write on this topic, A is a vendor of B and agrees to sell to B thousand pieces of carton boxes every month for B’s logistic service. There were no specifications of the carton boxes in this contract. This agreement is a void one. B had to send series legal notices to B for quality deterioration, but B couldn’t win the case since the agreement was void. In this blog, we will quickly look into different scenarios under which an agreement is considered not a void one, and is legally enforceable.
A legally valid Agreement be:
- it is expressed in writing and registered under the law
- it is a promise to compensate, wholly or in part, by the parties
- Agreement should not restrain parties from exercising a lawful profession, trade or business of any kind.
- Clauses should be certain and understandable
- Agreement should not restrict parties from enforcing his or her rights
To give a couple more instances, where agreement in consideration is void:
- A promises, for no consideration, to give to B Rs. 10,000. This is a void agreement.
- A promises to give his son, B, Rs. 10,000. A puts his promise to B into writing and registers it. This is a contract.
- A finds B’s purse and gives it to him. B promises to give A Rs. 50. This is a contract.
- A supports B’s infant son. B promises to pay A’s expenses in so doing. This is a contract.
- A owes B Rs. 1,000, but the debt is barred by the Limitation Act. A signs a written promise to pay B Rs. 500 on account of the debt. This is a contract.
- A agrees to sell a house worth Rs. 1C for Rs. 10L. A’s consent to the agreement was freely given. The agreement is a
- contract notwithstanding the inadequacy of the consideration.
- A agrees to sell a house worth Rs. 1C for Rs. 10L. A denies that his consent to the agreement was freely given. The inadequacy of the consideration is a fact which the Court should take into account in considering whether or not A?s consent was freely given
- A agrees to sell to B a hundred tons of oil. There is nothing whatever to show what kind of oil was intended. The agreement is void for uncertainty.
- A agrees to sell to B one hundred tons of oil of a specified description, known as an article of commerce. There is no uncertainty here to make the agreement void.
- A, who is a dealer in cocoanut-oil only, agrees to sell to B “one hundred tons of oil”. The nature of A’s trade affords an indication of the meaning of the words, and A has entered into a contract for the sale of one hundred tons of cocoanut-oil.
- A agrees to sell to B “all the grain in my granary at Ramnagar”. There is no uncertainty here to make the agreement void.
- A agrees to sell B “one thousand maunds of rice at a price to be fixed by C”. As the price is capable of being made certain, there is no uncertainty here to make the agreement void.
- A agrees to sell to B “my white horse for rupees five hundred or rupees one thousand”. There is nothing to show which of the two prices was to be given. The agreement is void