2022-01-24 17:38:42
Difference between illegal and void agreement (Law optional)
Illegal Agreements
An illegal agreement is not only void as between the immediate parties but has this further effect that the collateral transactions to it also become tainted (infect) with illegality. Thus, ‘every illegal agreement is unlawful, but every unlawful agreement is not necessarily illegal’. Effects of illegality: The general rule of law is that no action is allowed on an illegal and unlawful agreement. This is based on the following two maxims: - 1. No action arises from a base cause. The effect of this is that the law discourages people from entering into illegal agreements which arise from base. (Ex-turpi causa non oritur action). 2. In cases of equal guilt, the defendant is in a better position. (In pari delicto, potior est condition defendentis). Example: ‘A’ promises to pay ‘B’ Rs.500/- if he beats ‘T’. If ‘B’ beats ‘T’, he cannot recover the amount from ‘A’. (Or) If ‘A’ has already paid the amount and ‘B’ does not beat ‘T’, ‘A’ cannot recover the amount.
Void Agreements
According to Section 2(g) of the Indian contract Act, 1872. ‘Avoid agreement is one which is not enforceable by law’. A void agreement does not create any legal right (or) obligation. It is void-ab-initio (i.e.., void of into right from the beginning). The following agreements have been expressly declared to void by the contract act: -
1. Agreements by incompetent parties. (Section 11)
2. Agreements made under a mutual mistake of facts. (Section 20)
3. Agreements which the consideration (or) object is unlawful. (Section 23)
4. Agreements which the consideration (or) object is unlawful in part. (Section 24)
5. Agreements made without consideration. (Section 25)
6. Agreements in restraint of marriage. (Section 26)
7. Agreements in restraint of trade. (section 27)
8. Agreements in restraint of legal proceedings. (section 28)
9. An agreement which the meaning is uncertain. (section 29)
10. Agreements by way of the wager. (section 30)
11. Agreements contingent on impossible events. (section 36)
12. Agreements to do impossible Acts. (section 56)
13. In the case of reciprocal promises to do things legal and also other things illegal. The second set (illegal) of reciprocal promises is a void agreement. (section 57)
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