THE INDIAN CONTRACT ACT
Section 2(h) of the Indian Contract Act, 1872 defines
a contract as an agreement enforceable by law.
The two elements of an agreement are:
(i) offer or a proposal; and
(ii) an acceptance of that offer or proposal.
Void agreement is an agreement which is not
enforceable by Law
(1) Agreement by or with person’s incompetent to contract
(2) Agreement entered into through a mutual mistake
(3) Object or consideration – unlawful
(4) Consideration or object partially, unlawful
(5) Without consideration
(6) Restraint of marriage
(7) Restraint of trade
(8) Legal proceeding
(9) Consideration identified
(10) Wagering agreement
(11) Impossible agreement
(12) An agreement to enter into an agreement in the future
An agreement between two persons under which
money or money’s worth is payable by one person to
another on the happen or non happening of a future
uncertain event is called a wagering agreement
Effects of wagering agreements
• Agreement is void.
• No suit can be filled for any recovery of the amount won on
• It is not illegal. Any agreement collateral to wagering
agreement is valid.
• However, it is illegal in state of Maharashtra and
Agreement which is prohibited by law is illegal agreement.
Example: Agreement to commit crime.
Effects of illegal agreement:
• It is always void.
• Any collateral transaction to illegal agreement is also void.
• No action is allowed on illegal agreement.
Void Agreement Illegal agreement
Void – ab –
Not enforceable by Law
All void agreement is
Not liable to punished
A valid – collateral – is
Forbidden by any law
All illegal agreement are
Against the provisions
Party are criminally
Illegal, collateral –
Difference between Void Agreement and Illegal