Void Voidable And Illegal Agreement
A void contract is not enforceable, which means that neither party has recourse against the other party for infringement. A contract may be void from the outset or be cancelled due to special circumstances, including: in the case of a void contract, it is not valid from the outset. It is not necessary for a party not to back down or question its validity. In this case, neither party can impose a void contract, as it follows that the contract never existed. In the case of a countervailable contract, it becomes void only when a party invokes a legal ground for termination or revocation. In other words, without any party raising a legal objection, the contract remains valid. Contract law in India is governed by the Indian Contracts Act 1872. However, the Contracts Act does not purport to codify all contract law, but it expressly preserves any commercial usurity or incident of a contract that is not inconsistent with the provisions of the Act. Contract law is limited to the application of voluntary civil obligations. Contract law is not able to deal with the whole range of agreements, many agreements remain out of scope because they do not meet the requirement of a contract.
A contract is an agreement; an agreement is a promise and a promise is an accepted proposal. Therefore, any agreement is the result of a proposal on the one hand and its adoption on the other. An agreement is considered a contract if it is enforceable by law. Section 10 of the Act deals with the conditions of third-party effectiveness, According to this section, an agreement is a contract if it is concluded in exchange for a certain consideration between the parties responsible for the contract, with free consent and for legitimate purposes. 2. Types of contracts on the basis of their validity: – i) Valid contract: an agreement that contains all the essential elements of a contract is considered a valid contract. A valid contract may be enforced by law. ii) Invalid Contract [Section 2(j)]: an agreement that is not enforceable by law is considered void. An unde concluded contract is a contract that is no longer applicable by law. A contract, if originally concluded, may be valid and binding on the parties.
It can be invalidated later. (iii) Questionable contract[section 2(i)]: „An agreement that may be legally applicable to the choice of one or more of the parties, but not to the choice of others or others, is a countervailable contract.”