Void agreements are contracts that are unenforceable by law, which means that no legal rights or obligations arise from them. In other words, they lack any legal effect. These types of agreements are deemed to be invalid from the very beginning, rendering them completely useless.
Void agreements can be either illegal or voidable. Illegal agreements are agreements that violate the law, while voidable agreements are those that can be canceled at the option of one or more parties. Voidable agreements may be binding until they are canceled by one or more of the parties involved.
There are several reasons why an agreement may be considered void. These include:
1. Agreement not based on free consent:
If an agreement is made without the free consent of all parties involved, it is void. Free consent means that the parties entered into the agreement willingly and without any coercion, fraud, or undue influence.
2. Agreement with an unlawful object:
Any agreement that involves an object that is against the law is void. For example, a contract for illegal activities like drug trafficking or gambling is void.
3. Agreement with an uncertain object:
If an agreement is made with an object that cannot be determined or is uncertain, it is void. For example, an agreement to sell a property that does not exist is void.
4. Agreement with consideration that is illegal or immoral:
If an agreement involves consideration (the payment or exchange of something of value) that is illegal or immoral, it is generally considered void. For example, an agreement to pay someone to commit a crime would be void.
5. Agreement in restraint of trade:
Agreements that seek to restrict a person`s trade or profession are void. For example, a contract that prohibits a person from working for a competitor would be void.
In conclusion, void agreements are contracts that cannot be enforced by law. If you are entering into a contract, it is crucial to ensure that it is not void due to any of the reasons mentioned above. By doing so, you can save yourself from the potential legal consequences that may arise from being a party to a void agreement.