void agreements & contingent contracts(2)

8/3/2019 Void Agreements & Contingent Contracts(2)

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VOID AGREEMENTS

By Shweta Bambuwala



Void Agreements:-

A Void Agreement is not enforceable

by Law.

i.e. NO LEGAL EXISTANCE



Types of Void Agreements:-1. By Incompetent Persons

2. Under Mutual Fact

3. Under Mistake as to Law not in Force

4. Consideration is Unlawful.

5. Consideration or Object of which is Unlawful

6. Without Consideration7. In Restraint of Marriage

8. In Restraint of Trade

9. In Restraint of Legal Proceedings

10. The Meaning is Uncertain

11. By way of Wages12. Contingent on an Uncertain Future event

13. Contingent on an Impossible event

14. To do an Impossible event

15. To do an act which subsequently becomesimpossible



Agreement in Restraint of Marriage:-

Except minor it is void (sec.26)

Right to get married

Right to exercise choiceFor minor does not apply till the

attainment of majority



Agreement in Restraint of Trade:-

Every agreement by which anyone

is restraint from exercising a Lawful

profession trade or business of anykind, is to that extent void. (sec.27)

Usually such Trades are contrary to

public policy

Divisible agreements can be carried

on for part of agreement which is valid



Agreements by Way of Wager:-

Void

No suit enforceable for recovery of anything alleged to be won««..

Wager

An agreement between two parties to theeffect that if a given uncertain eventhappens, one party shall pay certain sumto other party.

Mutual chance of gain & loss is mustEssence is one party to win & other to lossupon a future event

Betting agreements are wageringagreements.



Essentials:-

Uncertain event

Mutual chance of gain loss Promise to pay money or money's worth

No control over happening of event

Exceptions:-

Horse racing ± not illegal as per sec.294(a)

Speculation is not wagering contract

Insurance contract

Games of skill or athletic competitions

Cross literacy competitions

Share Market Transactions

Chit funds us declared by court of Law



Contingent Contract

A Contract to do or not to do

something if some event is collateralto such contract, does or does not

happen (sec 31).



Essentials

1.Existence of Contingency

2.Contingency must be uncertain

3.Event must be collateral

Ex:- Fire Insurance



Rules regarding ContingentContract

Enforcement of contract contingent on,

H appening of a Future Uncertain Event

Non happening of a Future Uncertain Event

(Negative Condition) Future Conduct on living person

Specified event happening within fixed time

Specified event not happening within a fixed

time

Impossible events



Quasi Contracts

Quasi Contract is not a contract at all.No contract in fact but created by law.

Also termed as ³ Certain Relations resembling those

created by law ³.

Also known as implied contracts as obligation isimplied

Principles of quasi contracts

Duty is foundation of quasi contracts A person should not be allowed to enrich himself at

the expense of another



Types of quasi Contracts

Necessaries supplied to incompetent

person

Payment by an interested person

Liability to pay for non gratuitous acts

Conditions to be fulfilled are,

Thing must be done lawfully

No intention to act gratuitously

person must enjoy benefit of the act

Finder of goods

Mistake or coercion

void agreements & contingent contracts(2)

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