BUSINESS LAW

ON THE BASIS OF VALIDITY

BY
RAVI TEJAS
KALYAN .
ON THE BASIS OF VALIDITY

 Valid Contracts
 Void Agreements
 Illegal Agreements
 Void Contract
 Voidable Contract
 Un-Enforceable Contract
Valid Contract
The Contracts which are enforceable in a court of
law are called Valid Contracts.

To attain Validity the Contract should have certain

features like
 Consensus ad idem(Meeting of the minds)
 Certainty, free consent
 Two directional consideration
 Fulfilment of legal formalities
 Legal obligations, lawful object
 Capacity of parties, possibility of performance, etc.
VOID AGREEMENT

A Contract which does not satisfies all the essential of

valid contract, can become a void agreement because of
lack of any of those essentials.

 An agreement without consideration.

 An agreement with a minor is void.
 An agreement whose meaning is uncertain is
void.
ILLEGAL AGREEMENT

An illegal agreement is one the object of which is unlawful.

Such an agreement cannot be enforced by law. Thus illegal
agreements are always void from the very beginning.

Example:- There is a contract between X

and Z according to which Z has to
murder Y for a consideration of Rs.
10000/- from X. It is illegal contract.
VOID CONTRACT
A void contract is a contract which was valid when entered
into but which subsequently became void due to
impossibility of performance, or change of law, or due to
some other reasons.

Example:- X offers to marry Y. Y accepts X’s

offer. Later on Y dies. This contract was
valid at the time of its creation or
formations but now became void due to the
death of Y.
Voidable Contract

An agreement which is enforceable by law at the

option of one or more parties to the contract, but
not on the option of the others, it is kind of voidable
contract.

Example:- There is a Contract between A and B

where B has forcibly made A involved in the
Contract. It is voidable at the option of A.
Un-Enforceable Contract

It is a contract which is actually valid but cannot be enforced

because of some technical defect (Such as not in writing,
under stamped). Such contracts can be enforced if the
technical defects involved are removed. After rectification of
that technical defect, it becomes enforceable or valid contract.

Example:- An oral agreement for arbitration is

enforceable because the law requires that an
arbitration agreement must be in writing. If the oral
agreement for arbitration is reduced to writing, it will
become enforceable.
THANK
YOU.