You are on page 1of 11

A void agreement is considered, as if not made at all It is void ab initio (that is, right from the very beginning)

The following agreements are void:

Made by incompetent parties,


Made without consideration, or with unlawful consideration and/or object,

If against public policy, and so on

Following Agreements are Expressly Declared as Void:


1. Agreements in restraint of marriage [Section 26] But, an agreement that an employee will not marry till a certain age, or up to a certain period, while in service, is not void but valid; as no restraint on marriage itself is involved, - e.g. as the person can marry after leaving the job 2. Agreement in restraint of trade [Section 27] 3. Agreement in restraint of legal proceedings [Section 28] 4. Agreements void for uncertainty [Section 29] i.e. when goods to be sold are not specified. Except when the seller deals in one specified goods only

5. Agreement by way of wager [Section 30] 6. Agreements contingent on impossible event [Section 36] e.g. Shifting Taj Mahal from Agra to Lucknow 7. Agreements to do impossible act [Section 56] e.g. Turning iron into gold by magic

Agreement to do something, or not to do something, on the stipulated condition of some event, collateral to such contract, taking place or not taking place. is a contingent contract [Section 31].

Enforcement of Contingent Contracts [Sections 32 to 36]


(a) Only after that event actually takes place. Not enforceable if such future event becomes impossible [Section 32] e.g. cow under sale is dead. (b) Only after that event Not taking place, like becoming impossible [Section 33]. (c) Where a contract is contingent upon the manner in which a certain person will act at an uncertain and unspecified future time. Here, the specific event will become impossible when the specific person does something, which makes it impossible for him to so act. [Section 34]

(d) If it is dependent upon happening of some specific but uncertain event, within a fixed stipulated time in future, such contract will become void, if stipulated fixed time has already expired, and specific event has not taken place, or has become impossible [Section 35, paragraph 1]. (e) Where it is dependent upon the non-happening of a specific but uncertain event within a specified time; that contract may be enforced in law when the time so fixed has expired and the specified event has not taken place, or can now never take place [Section 35, paragraph 2]. (f) But a contingent agreement to do something or even not doing anything, in the case of an impossible event happening, whether such impossibility was known to the parties, or even not known to them, at the time of contract.

In Quasi Contract, though the obligations is neither contractual nor tortuous (expressly or impliedly), it is enforceable by being a tacit contract. Claim arising out of a quasi-contract is generally for money.

Cases, deemed as Quasi-Contracts

(i) Claims for Supply of necessaries of life [Section 68].


(a)Supply of necessaries of life only, commensurate with his condition in life, (b)To a person who is incompetent to contract and (c)To the persons who are bound to be supported by the incapable person (e.g. his wife and minor children).

(d)Compensation payable out of the property of the incapable person. It involves no personal liability of incompetent person. Thus, if there is no property of incapable person No claim is payable for the supply of necessaries.

(ii) Reimbursement of the person, who has paid the amount payable by another person under law, and where such payment is made to protect his own bona fide selfinterest [Section 69]. (iii) Obligation of a person enjoying benefits of non gratuitous act or delivery of goods [Section 70] to make due compensation to the other person for the act done or the delivery made by him; or else to restore the act done or return or the goods delivered by the other party.

(iv) Responsibility of finder of goods


When a finder takes the lost goods into his personal custody, an agreement impliedly takes place. He is considered as a bailee. Therefore, he must take as much care of the goods as a man of ordinary prudence would take in case of his own goods of similar value and volume [Section 71]. (v) Liability of a person to whom money is paid, or thing delivered by mistake or under coercion [Section 72]. He is required to repay the money so received, or return such goods.

Quantum Meruit

It means as much as merited or as much as earned. Where one of the parties has performed some work, but the other party has repudiated the contract, or when it becomes impossible to complete `remaining portion of the performance of the contract; the party can claim remuneration for work already performed.

You might also like