Void agreements refer to contracts that cannot be enforced by law. These contracts are considered null and void from the beginning, and neither party is legally bound to perform any obligations under them. Void agreements can arise for various reasons, and all of them are different in nature and effect. In this article, we will explore the various types of void agreements.
1. Agreements Against Public Policy:
An agreement that is against public policy is a void agreement. Public policy refers to the general principles or morals of the law. An agreement that is against public policy is one that, if put into effect, would be harmful to the public interest. For example, a contract to commit a crime or a contract to do something that is illegal is considered void.
2. Agreements by Persons of Unsound Mind:
A contract entered into by a person of unsound mind is void. The term unsound mind refers to a person that lacks the capability to comprehend the nature of the contract or its consequences. An individual with a mental disability or an illness that renders them incapable of understanding the terms of the agreement is considered of unsound mind.
3. Agreements by Minors:
A contract entered into by a minor is considered void. A minor refers to an individual who has not yet attained the age of majority, which varies from country to country. In most jurisdictions, minors cannot enter into contracts because they lack the legal capacity to do so. They can only enter into contracts that are beneficial to them, such as employment or education contracts.
4. Agreements by Coercion:
Any agreement that is made under coercion or undue influence is considered void. Coercion refers to the use of force or threats to compel someone to enter into a contract. Undue influence refers to the use of mental pressure or domination to influence the decision-making capabilities of an individual. Any agreement made under these circumstances is void and unenforceable.
5. Agreements with Mutual Mistake:
An agreement that is made based on a mutual mistake of fact is considered void. A mutual mistake occurs when both parties are mistaken about a particular fact that is essential to the contract. For example, if both parties enter into an agreement for the sale of a car, but it turns out that the car was destroyed in a crash before the agreement, the contract is void.
In conclusion, void agreements can arise due to various reasons, as explained above. It is essential to understand the different types of void agreements to avoid entering into undesirable contracts. As a rule of thumb, any contract that is against public policy, made by persons of unsound mind, made by minors, made under coercion, or based on mutual mistake is considered void.