An Agreement is void if consideration and objects are unlawful. If any part of a single consideration for one or more objects, or any or any part of any one of several considerations for a single object is unlawful, the agreement is void.
An agreement made without consideration is void, unless
- it is expressed in writing and registered under the law for the time being in force for the registration of assurances, and is made on account of natural love and affection between parties standing in a near relation to each other ; or unless
- it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for compensate for the promisor, or something which the promisor was legally compellable to do ; or unless
- it is a promise, made in writing and signed by the person to be charged therewith , or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of suits.
In any of these cases such an agreement is a contract.
Explanation 1 – Nothing in this section shall affect the validity, as between the donor and donee, of any gift actually made.
Explanation 2– An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate ; but the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given.
The promise may be either express or implied. It will be implied where one party has been legally compelled to pay a debt for which another is liable or where one has paid the whole of a debt for which he was only secondarily ( as in the case of a surety ) , or jointly ( as in case of a co -contractor, who can sue for contribution ), liable ; or, in a few instances, where one has discharged an obligation which another was legally bound to perform ( e.g., an undertaker who has performed a funeral may recover a fitting sum therefor from the executor of the deceased; or a third party, who has paid for the funeral of a wife living apart from her husband, may recover the reasonable expenses from her husband; or where one party knowingly allows another to pay money for him and does not object to his so doing.
The promise must be distinct to pay the particular debt which would otherwise be barred. A mere general acknowledgment of something being due by the defendant to the plaintiff is insufficient to take a case out of the operation of the Limitation Act. But the identification of the debt may be gathered from several letters, and need not be explicitly expressed in one.
Every agreement is restraint of the marriage of any person, other than a minor, is void.
Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.
Exception 1: One who sells the good- will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the good will from him , carries on a like business therein , provided that such limits appear to the Court reasonable, regard being had to the nature of the business.
Exception 2: Partners may, upon or in anticipation of a dissolution of the partnership, agree that some or all of them will not carry on business similar to that of the partnership within such local limits as are referred to in the last pre ceding exception.
Exception 3: Partners may agree that some one or all of them will not carry on or any business, other than that of the partnership, during the continuance of the partnership.
Every agreement, by which any party 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 that extent.
Exception 1: This section shall not render illegal a contract by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to arbitration, and that only the amount awarded in such arbitration shall be recoverable in respect of the dispute so referred.
When such a contract has been made, a suit may be brought for its specific performance ; and if a suit, other than for such specific performance, or for the recovery of the amount so awarded, is brought by one party to such contract against any other such party , in respect of any subject which they have so agreed to refer, the existence of such contract shall be a bar to the suit.
Exception 2: Nor shall this section render illegal any contract in writing, by which two or more persons agree to refer to arbitration any question between them which has already arisen, or affect any provision of any law in force for the time being as to references to arbitration
Agreements, the meaning of which is not certain, or capable of being made certain, are void.
Agreements by way of wager are void ; and no suit shall be brought for recovering anything alleged be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which any wager is made.
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