Void Agreement Can Be Enforced

Void Agreement Can Be Enforced: Understanding the Legal Concept

A void agreement is one that is considered invalid and unenforceable by law. This could be due to various reasons, such as fraud, misrepresentation, illegality, or lack of capacity to contract. However, there are certain situations where a void agreement can be enforced or given effect, despite its inherent flaws. In this article, we’ll explore the legal concept of void agreements and how they can be enforced under specific circumstances.

What is a Void Agreement?

Before delving into the enforcement of void agreements, let’s first understand what constitutes a void agreement. Section 2(g) of the Indian Contract Act, 1872 defines an agreement as any promise or set of promises that forms consideration for each other. A void agreement, as per section 2(j) of the same Act, refers to an agreement that is null and void from its inception, i.e., it is incapable of being performed or enforced by law.

The Act defines certain types of agreements as void, such as those based on fraud, mistake, coercion, undue influence, or unlawful considerations. For instance, an agreement to commit a crime, or to smuggle contraband goods, or to defraud someone, is inherently void and cannot be enforced by law. Similarly, an agreement made by a minor or a person of unsound mind is also void, as they lack the capacity to enter into a legally binding contract.

Exceptions to the Rule

However, there are certain situations where a void agreement can be enforced, albeit with certain caveats and limitations. Let’s look at some examples:

1. A contract made under mutual mistake or erroneous assumption of facts is void, but if one party was aware of the mistake and took advantage of it, the contract can be enforced against them. For instance, if A sells a painting to B, both believing it to be an original work by a famous artist, but later discovers it to be a fake, the contract is void. However, if A was aware of the forgery and still sold it to B at a high price, B can seek damages or rescind the contract.

2. An agreement made by a minor is void ab initio, but if they ratify the agreement after attaining majority, it becomes a valid contract. Ratification is the act of confirming or adopting a previously void act, and it can be done either expressly or impliedly. For example, if a minor buys a car from a dealer, but later continues to use it and make payments after turning 18, they are deemed to have ratified the contract.

3. A contract made by fraud or misrepresentation is voidable at the option of the aggrieved party, meaning they can choose to avoid it or enforce it with modifications. However, if the party has affirmed or ratified the contract despite knowing about the fraud or misrepresentation, they cannot later plead it as a ground for avoidance. For instance, if A sells a property to B, concealing the fact that it is subject to a pending litigation, the contract is voidable at B’s option. However, if B later discovers the litigation but chooses to keep the property and make improvements, they cannot sue A for fraud or rescind the contract.

Conclusion

In conclusion, a void agreement is generally deemed unenforceable by law, as it lacks the essential elements of a valid contract. However, there are exceptions to this rule, where a void agreement can become enforceable in certain circumstances, such as mutual mistake, ratification by a minor, or estoppel by affirmation. However, it is important to note that these exceptions are subject to various legal limitations and requirements, and each case is decided on its own merits. Therefore, it is advisable to seek legal advice before enforcing a void agreement, to avoid any unintended consequences or legal disputes.