Difference between void contracts and void agreement

1. Corporate Legal
Environment
Assignment
Submitted to- Mr. Gurpratap Singh
Submitted by- Tania Goel
Roll no- 1331878

2. VOID AGREEMENTS
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 no legal rights or obligations arise
out of a void agreement and the parties to the
contract do not get any legal redress in the case
of void agreements. It is void ab initio i.e. from
its very inception, for example an agreement
without consideration or with minor.

3. VOID CONTRACT
Void contract is defined by Section 2(j) viz., a
contract which is legally enforceable when entered but
become void due to supervening impossibility of
performance.
A void contract is not void from the beginning, it becomes
void at a subsequent stage due to the occurrence of an
event or change in the original conditions. This may
illustrated with the help of an example. A, an Indian, enters
into a contract with B, a Pakistani national, to supply woolen
carpets after three months. After some time war breaks out
between India and Pakistan. The contract in between A & B
shall become void at the outbreak of war.

4. Difference between
a Void
Agreement and a
Void Contract

5. BASIS OF DIFFEREN
CE
VOID
AGREEMENT
VOID CONTRACT
Void ab-intio It is void from
the very
beginning.
It is valid when made and continues to
remain valid till it is repudiated by the
aggrieved party. It becomes unenforceable
later on.
Which essential
element of contract is
missing?
It is void
because an
essential
element of a
valid contract is
missing.
It is voidable because the consent of a party
is not free.
Enforceability It cannot be
enforced by any
party.
It continues to be enforceable if the
aggrieved party does not repudiate the
contract.
Right of third party Third party
does not
acquire any
rights.
A third party who purchases goods in good
faith and for consideration before the contract
is repudiated acquires good title of those
goods.
Effect of lapse of
Even on the
On the expiry of reasonable time, it may

6. BASIS OF DIFFERE
NCE
VOID AGREEMENT VOID CONTRACT
Treatment Void agreements have been
specifically stated in Chapter
II of the act under Sections
11, 20, 23, to 30, and 56.
No such specific mention is
made for void contract in any
Chapter of the Act.
Rights A void agreement does not
create any legal right or
obligation upon the parties to
the agreement.
On the other hand, a void
contract does create a right and
an obligation upon the
parties. A party to the void
contract is within his rights to
get back the benefit which he
had given to the other party in
terms of money, goods or
services and the other
party enjoying such benefit
under a void contract is placed
under an obligation to
return that benefit to him.
Damage The question of damages
does not arise.
The aggrieved party can claim
damages.