Write an Short note on Void Agreement, Valid Contract & Voidable contracts.

Void Agreement: 

An agreement not enforceable by law is said to be void’ [Section 2 (g)]. Thus a void agreement does not give rise to any legal sub-sequences and is a nullity in the eyes of law. It is void from the very beginning e.g., an agreement with a minor or a person of unsound mind. Similarly in various other Sections of the Indian Contract Act, certain agreements are declared void like agreements in restraint of trade, marriage, etc. In all such cases no legal rights are created and no legal obligations are imposed on the parties.

A void agreement should be distinguished from a ‘void contract’. A void agreement never amounts to a contract as it is void from the very beginning. A ‘void contract’ is valid when it is entered into, but subsequent to its formation something happens which makes it unenforceable by law.

Valid contracts: 

A valid contract is an agreement enforceable by law. It satisfies all the essential requirements of a valid contract as laid down by Section 10 of Indian Contract Act. If one or more of these elements are missing, the contract is not valid.

Voidable contracts: 

According to Section 2 (i) of Indian Contract Act, an agreement which is enforceable by law at the option of one or more of the parties there to, but not at the option of the other or others, is a voidable contract. Thus, a voidable contract is one which may be repudiated at the will of one of the parties, but until it is so repudiated it remains valid and binding. For example, a contract is treated as voidable at the option of the party whose consent has been obtained by coercion, undue influence, fraud or misrepresentation.

Example : X threatens to shoot Y if he does not sell his car worth Rs. 5,00,000 for Rs. 1,00,000. Y agrees to do so. The contract is voidable at the option of Y.