Void Agreement Sec 25

When it comes to legal agreements, there are certain criteria that must be met for them to be considered valid and enforceable. One of these criteria is outlined in Section 25 of the Indian Contract Act, which defines what constitutes a void agreement.

According to Section 25, an agreement that is considered void cannot be enforced by law, and is essentially considered to be non-existent. There are several situations in which an agreement may be considered void, including in cases where:

1. The agreement is made under coercion: If one of the parties to the agreement is forced or threatened into signing it, the agreement is considered void.

2. The agreement is made under undue influence: If one of the parties to the agreement is in a position of power over the other and uses that power to influence the terms of the agreement, the agreement is considered void.

3. The agreement is made with a person who is of unsound mind: If one of the parties to the agreement is not capable of understanding the terms of the agreement due to mental incapacity, the agreement is considered void.

4. The agreement is made for an illegal purpose: If the purpose of the agreement is to carry out an illegal act, the agreement is considered void.

5. The agreement is made without consideration: If one of the parties to the agreement promises to do something without receiving anything in return, the agreement is considered void.

In addition to these specific situations, there may be other circumstances that render an agreement void, such as if it violates public policy or is against the law.

It is important to note that a void agreement is different from a voidable agreement. A voidable agreement is one that is initially valid, but can be cancelled or withdrawn by one of the parties due to certain conditions not being met or some other defect in the agreement. A void agreement, on the other hand, is considered null and void from the very beginning and cannot be enforced by law.

In conclusion, Section 25 of the Indian Contract Act outlines the criteria for what constitutes a void agreement. If an agreement falls within one of the categories listed in the Act, it cannot be enforced by law and is essentially null and void. It is important for individuals and businesses to understand the implications of void agreements in order to avoid any legal complications in the future.