Which agreement is declared void by section 25?
Asked by: scraper | Last update: July 21, 2026Score: 0/5 (0 votes)
Under Section 25 of the Indian Contract Act, 1872, any agreement made without consideration (something given in exchange, like money or a promise) is declared void.
What are the exceptions to consideration under Section 25?
Although the general rule is that an agreement without consideration is void, Section 25 carves out thoughtful exceptions that allow agreements to be valid even without consideration in special cases like natural love and affection, past voluntary services, time-barred debts, agency, and completed gifts.
What are the types of void agreements?
To illustrate, an unlawful object may be a contact between people to do robbery and share money. A contract restricting the marriage of one person with another person or restraining a person from carrying a trade, business or profession is a void contract. A contract which provides to do an impossible act is void.
What agreement has been expressly declared to be void by the Indian Contract Act?
Agreements Expressly Declared Void
Any agreement that restricts a person from marrying is void. Agreements that restrain anyone from exercising a lawful profession, trade, or business are void. Agreements that are so uncertain that their meaning cannot be determined are void.
What happens when a contract is declared void?
A void contract is an agreement that is legally invalid from the outset and never creates enforceable rights or obligations. Because a fundamental legal requirement is missing, the contract is treated as if it never existed. Neither party can enforce performance, and courts will not recognize the agreement as binding.
Void Agreement | Section 26-30 | Wager Agreement | Caselaws
What is the difference between a void agreement and a void contract?
Thus it is very clear from the two definitions that a void agreement is void from the very beginning and does not create any legal effect, while 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.
What are 6 things that void a contract?
We'll cover these terms in more detail later.
- Understanding Void Contracts. ...
- Uncertainty or Ambiguity. ...
- Lack of Legal Capacity. ...
- Incomplete Terms. ...
- Misrepresentation or Fraud. ...
- Common Mistake. ...
- Duress or Undue Influence. ...
- Public Policy or Illegal Activity.
What does expressly declared to be void mean?
An agreement by which any person is restrained from plying a trade or practicing a legal profession or exercising a business of any kind is an expressly void agreement. Such an agreement violates the constitutional rights of a person. However, there are a few exceptions to this rule.
What are some examples of void agreements?
A contract for an illegal purpose such as a gambling contract would be an example of a void contract. If a party to the contract is mentally incapacitated, then the contract can be held void. They do not have the proper capacity to understand and agree to accept.
What circumstances in which agreement becomes void?
(8) Agreement to do an Impossible Act (section 56). Section 24: Agreements void if considerations and objects unlawful in part. - If any part of a single consideration for one or more objects, or anyone or any part of any one of several considerations for a single object is unlawful, the agreement is void.
What are three things that can cause a contract to be void?
A contract will be void where:
- the parties contract on the basis of a fundamental common mistake.
- one party contracts on mistaken terms and the other party knows of the mistake.
- one party is mistaken as to the other party's identity.
- a party executes a document under a fundamental misapprehension.
Who decides if a contract is void?
In most situations, it is courts have the discretion to determine whether a contract is void or voidable. When determining whether a contract will be treated as void or voidable courts consider a variety of factors.
Is a void agreement illegal?
A void agreement is one that is not legally binding because it goes against a law or public policy. An illegal agreement is one that involves illegal activities or is in violation of a law. The two terms are not mutually exclusive, as an agreement can be both void and illegal.
What is Section 25 of the Restatement of contracts?
Restatement (Second) of Contracts - § 25 Option Contracts
An option contract is a promise which meets the requirements for the formation of a contract and limits the promisor's power to revoke an offer.
What is Section 25 of the Indian contract?
25. Agreement without consideration, 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.
Under what conditions is there no consideration?
In contract law, consideration is the bargained-for exchange of value. Without it, an agreement is generally a legally unenforceable gratuitous promise. There is no valid consideration in the following situations:
What are the conditions for a void agreement?
A void contract is an agreement that is legally invalid and unenforceable from the moment it is created. Unlike a voidable contract (which can be canceled by one of the parties), a void contract never had any legal standing and cannot be enforced by anyone.
What makes a contract legally void?
A contract that is void is not legally enforceable and the parties thereto are not legally obligated to each other. Generally, contracts are void because the subject matter is not legal or one of the contracting parties does not have the competency to contract.
What is the difference between void agreement and void contract?
A void agreement is one, which according to law is neither enforceable nor it creates any legal consequences. The void contract, on the other hand, is a contract which is valid at the time of formation but becomes unenforceable, due to impossibility or illegality. A void agreement is void since it has been created.
What are the two types of void contracts?
Void or inexistent contracts produce no legal effect because they lack essential elements or violate the law. There are two types: inexistent contracts lack required formalities, while illegal contracts contravene morality or public policy.
What mistake is likely to be voidable?
In contract law, a mutual (bilateral) mistake of a material fact is most likely to be voidable. This happens when both parties are wrong about a fundamental assumption or a core fact regarding the agreement, meaning there was no true "meeting of the minds".
What is an example of agreement without consideration is void?
Explanation Case Study Example:
B gets Rs. 1,000, for no consideration from the promiser party A. This type of case is considered a void agreement. B the son of A receives a house as a token of love and affection from his father A.
How to prove a contract is void?
7 Ways to Legally Void a Contract
- Establish the Validity of the Contract. ...
- Void a Contract Due to Capacity. ...
- Check for Duress. ...
- Use the Cooling-Off Rule. ...
- Read the Fine Print. ...
- Mutually Void Contract. ...
- Void a Contract Over a Breach.
What does declared void mean in law?
In law, void means of no legal effect. An action, document, or transaction which is void is of no legal effect whatsoever: an absolute nullity—the law treats it as if it had never existed or happened.
Is a verbal agreement legally binding?
Yes, verbal agreements are legally binding if they meet the basic requirements of a valid contract. However, they are significantly harder to prove and come with strict legal limitations.