Void Contract

voyd KON-trakt Latin 'vacuus' meaning 'empty' or 'null'; legally signifying absence of binding force from inception

Definition

An agreement that is entirely without legal effect from its inception (ab initio) and cannot be enforced by either party.

Detailed Explanation

A void contract is one that has no legal existence or effect from the very beginning. The Indian Contract Act, 1872, distinguishes between 'void agreements' (Section 2(g)) which are unenforceable from inception, and contracts that 'become void' (Section 2(j)) due to subsequent events. Technically, a 'void contract' is a misnomer - if it is void, it is not a contract at all.

Agreements that are void ab initio include: agreements by minors (Section 11); agreements without consideration (Section 25, with exceptions); agreements in restraint of trade (Section 27); agreements in restraint of marriage (Section 26); agreements in restraint of legal proceedings (Section 28); uncertain agreements (Section 29); wagering agreements (Section 30); and agreements to do impossible acts (Section 56).

A valid contract may become void by subsequent impossibility or illegality (Section 56). When a contract becomes void, parties are excused from further performance, but rights already accrued remain enforceable. Money paid under a void agreement may be recovered under Section 65, which requires restoration of any benefit received.

Essential Elements

1 The agreement lacks one or more essential elements of a valid contract
2 No legal obligations arise from the agreement
3 Neither party can enforce the agreement
4 The agreement is void from its inception (ab initio)
5 No rights or liabilities are created
6 Benefits received must be restored under Section 65

Leading Cases

Mohori Bibee v. Dharmodas Ghose

1903

(1903) 30 Cal 539 (PC)

Relevance: Landmark case holding that a contract with a minor is void ab initio, not merely voidable

Satyabrata Ghose v. Mugneeram Bangur & Co.

1954

AIR 1954 SC 44

Relevance: Explained when a contract becomes void due to subsequent impossibility under Section 56

Superintendent and Remembrancer of Legal Affairs v. Corporation of Calcutta

1967

AIR 1967 SC 997

Relevance: Discussed agreements in restraint of trade under Section 27

Gherulal Parakh v. Mahadeodas Maiya

1959

AIR 1959 SC 781

Relevance: Explained the nature of wagering agreements under Section 30

Usage Example

"The loan agreement with the minor was declared a void contract, and the lender could not recover the principal amount through legal proceedings."

Synonyms

void agreement nullity void ab initio

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