What is void agreement and types?
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What is void agreement and types?
Void agreements are those agreements which are not enforced by law courts. Section 2(g) of the Indian Contract Act defines a void agreement as, “an agreement not enforceable by law”. Thus the parties to the contract do not get any legal redress in the case of void agreements.
What do you mean by an illegal agreement?
An illegal agreement under the common law of contract, is one that the court will not enforce because the purpose of the agreement is to achieve an illegal end. The illegal end must result from performance of the contract itself. The classic example of such an agreement is a contract for murder.
Who are the persons incompetent to contract?
Minors, lunatics, unsound and intoxicated persons are incompetent to enter into a contract. However, there are exceptions as defined in Section 68. In case of an exception the minor or lunatic is not personally liable. All the parties must have agreed upon the subject matter of the agreement in the same sense.
When can a mentally incompetent person void a contract?
Mental Incapacity Some states use what’s called the “affective” test: a contract can be voided if one party is unable to act in a reasonable manner and the other party has reason to know of the condition. And some states use a third measure, called the “motivational” test.
What is the effect in most states of a person being formally adjudicated incompetent?
A person who has been declared incompetent in a court proceeding lacks the legal capacity to enter into a contract with another. Such a person is unable to consent to a contract, since the court has determined that he does not understand the obligations and effects of a contract.
What makes a contract unconscionable?
If a contract is unfair or oppressive to one party in a way that suggests abuses during its formation, a court may find it unconscionable and refuse to enforce it. A contract is most likely to be found unconscionable if both unfair bargaining and unfair substantive terms are shown.
