According to Section 10 of the Indian Contract Act,1872, all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. So, Here are 9 Important Provisions of contracts for void agreement and voidable contract that you must know -
Importance of Free Consent - Consent is said to be free when it is not caused by coercion, undue influence,fraud,misrepresentation and mistake [S.14]. When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused. But, if the party whose consent was so caused had the means of discovering the truth with ordinary diligence, then it is not voidable [S.19].
Mistake Of Fact - “Mistake of fact” generally refers to a mistaken understanding by someone as to the facts of a situation. When both parties are under mistake as to matter of fact ,then the agreement is void. But, when a contract caused by mistake of one party as to matter of fact, then it is not voidable.[S.20 & 22]
Unlawful Object - When the object of a contract or the consideration of a contract is prohibited by law, then they are not lawful consideration or object anymore. The agreement is void, If any part of a single consideration for one or more objects, or any one or any part of any one of several consideration of a single object, is unlawful.[S.24]
Uncertainty - Agreements whose meaning is not certain or capable of being made certain are void.[S.29]
Consideration - Consideration is simply the exchange of one thing of value for another. Therefore,agreement without consideration is void, unless it is in writing and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law.[S.25]
Wager - Agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which may wager is made.[S.30]
Every agreement in restraint of the marriage of any person, other than a minor, is void. For example - A agrees with B for good consideration that she will not marry C. It is a void agreement.[S.26]
Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.[S.27]
Every agreement, by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights, is void to the extent.[S.28]
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