Difference between Void Agreement and Void Contract

What is Void Agreement?

According to section 2(g) of the Indian Contract Act, 1872, an agreement is void if it is not enforceable by law, meaning that it cannot be contested in court. Such an agreement does not give the parties involved any rights because it has no legal ramifications. A void agreement cannot become a contract; it is invalid from the moment it is made.

An agreement must follow all of the requirements outlined in section 10 of the act in order to be enforceable. Therefore, a contract is null and void if any one or more of its basic terms are violated at the time of its inception. Several contracts that are specifically deemed null and invalid include:

1. Agreement with mentally ill parties, like a little, insane adversary from another planet.
2. An agreement with an illegal consideration or goal.
3. The arrangement that forbids someone from getting married.
4. A contract in which there is a major error that affects both parties.
5. The trade-restrictive pact.
6. Agreements for wagering, etc.
7. As an illustration, let's say Jimmy asks David (the minor) to give 1000 kg of wheat for Rs 20,000 at a later date, but B fails to provide Jimmy with the promised amount of wheat. As a result of David's age and the voidability of agreements made with minors, Jimmy is unable to sue David.

What is Void Contract?

A "void contract" is one that is no longer enforceable in court and is defined as such in Section 2(j) of the Indian Contract Act, 1872. These kinds of agreements are void, and neither side may enforce them.

Invalid contracts are legally binding on the parties and are enforceable under section 10 of the act as long as they are entered into and meet all requirements before becoming invalid due to non-performance. These contracts lose their legal enforceability because of:

1. Taking over impossible
2. Alteration of legislation
3. Afterward Illegality
4. Rejecting a voidable agreement
5. Contractual obligations, etc.

Important Distinctions Between a Void Contract and a Void Agreement

Regarding the distinction between a void contract and a void agreement, the following factors are significant:

1. An agreement that is legally invalid is one that cannot be enforced and has no legal ramifications. Conversely, a void contract is one that was legitimate when it was formed but that can no longer be enforced because of its illegality or impossibility.
2. A void agreement is null and invalid by virtue of its creation. In contrast, a void contract is one that is enforceable when it is made but eventually becomes invalid.
   While a void contract is nonetheless enforceable as long as it is not unenforceable, a void agreement is never legitimate.
3. If one or more of the requirements for a contract are missing, the agreement is worthless. Conversely, a contract that is rendered void because it cannot be carried out is said to be void.
4. The agreement is deemed invalid since it does not meet the requirements necessary to establish a legally binding contract. On the other hand, a contract that satisfies all conditions for being enforceable but is rendered void because of unforeseen events is said to be void.
5. In the event of a void agreement, restitution or restoration is not allowed; nevertheless, in specific situations, restitution is allowed on an equitable basis. Conversely, restitution is given to the party in question in the case that the originally legitimate contract subsequently turns invalid.

Conclusion

Consequently, you might be able to comprehend the words in depth after reading the explanation and example above. A null agreement, however, does not impose any legal duties. However, when a contract is declared void, the legal responsibilities that were established during its creation cease to exist.