VOID AGREEMENTS

• An agreement not enforceable by law is said

to be void.
• Certain agreements have been expressly
declared as void under the act.
 Expressly declared void agreements

• Made by incompetent parties (sec 11)

• Agreements made under bilateral mistake of
fact (sec 20)
• Agreements where object and consideration is
unlawful (sec 23)
• Agreements the consideration and object of
which are unlawful in parts(sec 24)
• Agreements made without consideration(sec
25)
• Agreements in restraint of marriage (sec 26)
• Agreements in restraint of trade (sec 27)
Exceptions : 1) statutory provisions relating to a)
sale of goodwill,
b) Indian partnership act wrt continuing
partners, outgoing partners and in case of
dissolution of firm and
c) LLP act
2)Judicial interpretation w.r.t. trade combinations
,service agreements and sole or exclusive dealing
agreements and franchise.
• Agreements in restraint of legal proceedings
(sec 28) w.r.t. enforcements of rights and
reducing the period of enforcements
exceptions :a) A contract is valid if parties
agree that any dispute between them on any
subject shall be referred to arbitration
b) a contract is valid if parties agree to
refer to arbitration any question between
them which may arise in future, provided it is
in writing.
• Agreements the meaning of which is
uncertain(sec 29)
• Agreements to do impossible acts ( sec 56)
• Wagering agreements( sec 30)
An agreement involving payment of a certain
sum of money upon the determination of an
uncertain future event.
For e.g. A agrees to pay Rs. 10000 to B if it rains
and B agrees to pay the same if it doesn’t rain.
 Essentials of a Wager
• There must be a promise to pay money or
money’s worth.
• It must be conditional on an event happening
or not happening.
• There must be uncertainty of event.
• Two parties , each must stand to win or lose.
• Common intention to bet
• Parties should have no interest in the event
except for the stake.
Transactions resembling wager but not void

• Chit fund schemes

• Commercial transactions or share market
transaction
• Horse race transactions of Rs. 500 and above
• Games of skills like crossword puzzles ,picture
competitons and athletic competitions, provided
the prize money does not exceed Rs. 1000
• A contract of insurance.
 Difference between contract of insurance and
wagering agreement
Contract of insurance
1. It is to indemnify the loss.
2. Mutual consideration
(premium and
compensation)
3. Insurable interest
4. contract of indemnity
5. Valid and enforceable
6. Based on scientific
calculations
7. Beneficial to society
Wagering agreement
1. Promise to pay money or
money’s worth
2. No consideration
3. No insurable interest other
than betting
4. loser has to pay
5. Void and unenforceable
6. No logical calculations
7. Against public welfare