Professional Documents
Culture Documents
Another essential element of a valid contract is that the agreement must not be declared void under any provision of law. A void agreement is one that cannot be enforced by law.
The list of agreements expressly declared as void are as under: Agreement in restraint of marriage Agreement in restraint of trade Agreement in restraint of legal proceedings Agreement involving uncertainty Wagering agreements Agreement to do impossible act
Restraint of trade can be normal or abnormal ,partial or complete ,conditional or unconditional all restraints are void.
Exceptions
Sale of goodwill Restrain on partners Service contract
Section 28 Every agreement by which any party thereto is restricted 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 right,is void to that extent.
Under the provision of this section ,all agreements are void to the extent that it: Restrains a party ,wholly or partly , from enforcing his rights Such agreement are deemed to be void because they are against public policy . Every party to a contract has the inherent right to seek the aid of law to protect his rights under the contract, an agreement eliminate the rights of a party is void.
Exceptions
An agreement to refer future disputes to arbitration An agreement to refer a present dispute to arbitration
Features
An wagering agreement has a promise to pay money or money worth. The agreement is conditional on occurrence or non occurrence of an event. Each party to wager equally stands to win or lose. Neither party to a wagering agreement has any control on the outcome of the event. The wagering contract is incomplete till the happening of the event.
Exceptions
Horse race Commercial transactions Speculative transactions Chit fund Contract of insurance