Agreements expressly declared void ppt: Understanding the legal implications
Agreements are an essential part of any business transaction. They define the terms and conditions of the deal, set the expectations, and ensure that all parties involved understand their rights and obligations. However, not all agreements are enforceable under the law.
There are certain agreements that are expressly declared void by the law. These agreements are considered illegal, invalid, and unenforceable. It`s crucial to understand the legal implications of such agreements to avoid any legal disputes and ramifications.
The Indian Contract Act, 1872, outlines the legal framework for entering into contracts in India. According to the Act, certain agreements are expressly declared void, such as:
Agreements by minors: A person who has not attained the age of 18 years is considered a minor and lacks the capacity to enter into a contract. Any agreement with a minor is void, and they cannot be held liable for its performance.
Agreements without free consent: An agreement entered into without the free consent of the parties involved is void. Free consent implies an agreement that is not obtained through coercion, undue influence, misrepresentation, or fraud.
Agreements with unlawful considerations or objects: Any agreement that has an unlawful consideration or object is void. An unlawful consideration refers to money or property exchanged for an illegal act, while an unlawful object refers to the purpose of the agreement being against public policy or prohibited by law.
Agreements that restrict legal rights: Agreements that restrict legal rights are void. For instance, an agreement that restricts a person`s right to approach a court of law is against public policy and hence, void.
Agreements in restraint of trade: Any agreement that restricts a person`s freedom to carry on trade or business is void, except in the case of reasonable restrictions such as non-compete clauses in employment contracts.
It`s essential to note that any agreement that falls under the category of expressly declared void is unenforceable and cannot be enforced by any court of law. Such agreements are deemed to have never existed in the first place, and any performance made under them cannot be recovered.
In conclusion, understanding the legal implications of agreements expressly declared void is crucial for any business transaction. It`s important to ensure that all agreements entered into comply with the legal framework, are enforceable, and protect the interests of all parties involved. Any violation of the law can lead to legal disputes and potential loss of reputation and revenue.
