Introduction to Contract

of Sale and Subject Matter

A contract of sale is a legal agreement in which a seller transfers
ownership of goods to a buyer for a specified price. The subject matter
is crucial to the validity of the contract, as any destruction of the subject
matter can lead to the contract being voided.

KB by Kashish Barjatya
Explanation of Void Contract
Invalidity Legal Consequences
A void contract is a legally invalid agreement It does not create any legal rights or
that is unenforceable by law. obligations between the parties involved.
First Condition for Voiding a Contract of Sale
1 Complete Destruction
The subject matter must be completely destroyed, making performance impossible.
Second Condition for Voiding a Contract of
Sale
1 Prior to the Contract
The destruction must occur before the contract is entered into, rendering it impossible to
fulfill.
Third Condition for Voiding a Contract
of Sale
1 Not Due to Buyer's Fault
The destruction must not be due to any fault or negligence of the buyer.
Examples of Contracts Meeting the
Conditions
Fire Damage Natural Calamity

A contract for the sale of a painting, which gets Agricultural produce destroyed by an
destroyed in a fire before the transfer of unforeseen natural disaster before delivery to
ownership. the buyer.
Legal Implications of a Void Contract
1 Non-enforceability
A void contract cannot be enforced by law, and any consideration given
must be returned.

2 No Legal Effect
It has no legal effect from the outset, as if it had never been entered into.
Conclusion and Key Takeaways
1 2 3

Strict Requirements Impact on Parties Legal Guidance

Voiding a contract on the It's important to consider the Seeking legal advice is crucial
grounds of the destruction of legal and financial impact on in understanding and
subject matter involves strict the parties involved in such addressing the implications
legal requirements. situations. of void contracts.