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Void Agreements - Agreements void if objects and consideration are unlawful in part- Section 24, 25, 26, 27, 28, 29, 30 of Indian Contract Act, 1872

 

 

Agreements are making with a common object for the benefit of both all the parties involved in the agreement.  But sometimes the agreements are making for the benefit of only one party or it may be made with partial unlawful object. It may also be made without consideration to benefit only one party. It may be to protect personal interest or for the interest of few persons in the agreement. These kinds of agreements are not valid in the eyes of law. All the conditions for a valid agreement mentioned in the Indian Contract Act 1872 must be satisfied for legal validity of an agreement. Other agreements are void either partly or fully. The following are the legal provisions related to void agreements in the Indian Contact Act, 1872.  

 

As per Section 24 of Indian Contract Act, 1872 Agreements are void if consideration and Objects are unlawful in Part. It is mentioned in the Act as:

 

“If any part of a single consideration for one or more objects, or any one or any part of any one of several consideration of a single object, is unlawful, the agreement is void”.

As per Section 25 of Indian Contract Act, 1872, agreements without consideration are void, unless it is in writing and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law.

 

As per the provisions in the Indian Contract Act, “an agreement made without consideration is void, unless –

 

(1)         it is expressed in writing and registered under the law for the time being in force for the registration of documents, and is made on account of natural love and affection between parties standing in a near relation to each other; or unless 

 

(2)          it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do; or unless 

 

(3)         it is a promise, made in writing and signed by the person to be charged therewith or by his agent generally or specially authorised in that behalf, to pay wholly or in part debt of which the creditor might have enforced payment but for the law for the limitation of suits. In any of these cases, such an agreement is a contract."

 

But there are exceptions in some cases – e.g. Gift Deed may be without consideration, but it is valid.

 

As per Section 26 of Indian Contract Act 1872 agreement in restraint of marriage other than a minor is void.

 

As per Section 27 of Indian Contract Act, 1872 every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.

 

As per Section 28 of Indian Contract Act, 1872 agreements in restrain of legal proceedings, void

Every agreement, by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights, is void to the extent.

 

An uncertain agreement of which meaning is not certain is also void as per Section 29 of the Indian Contract Act, 1872

 

As per section 30 of Indian Contract Act 1872, agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which may wager is made. 

 

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