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What are valid, voidable and void contracts under Indian Law?

    Home questions What are valid, voidable and void contracts under Indian Law?
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    What are valid, voidable and void contracts under Indian Law?

    By | | Comments are Closed | 16 August, 2020 | 0
    Questions › Category: General › What are valid, voidable and void contracts under Indian Law?
    0 Vote Up Vote Down
    AvatarMonika asked 7 months ago
    1 Answers
    0 Vote Up Vote Down
    NyaayaNyaaya answered 7 months ago

    A contract is a legally binding agreement made between two or more parties by which rights are acquired by one and obligation by the other to do or not to do something.

    • A valid contract1 is a contract made between consenting adults with the intention to enter into a legal relationship where an offer is made by one party to do a legal activity and such offer is accepted by the other party in exchange of some benefit. For example, if X decides to sell goods to Y, X can make an offer to Y and if Y accepts the offer, they can put it in writing. This is a valid contract. Contracts can also be verbal or oral contracts but they become difficult to prove in Court if a dispute arises.
    • A contract becomes voidable 2 if the contract is entered into without the free will of any of the parties. For example, if X made Y sign a contract under the influence of alcohol. A contract also becomes voidable if one party is unable to perform their duties according to the contract. For example, X is unable to deliver the products to Y on time due to a natural calamity, as per the contract, the contract becomes voidable on instance of Y.
    • A contract is void if it cannot be enforced by law or has an illegal objective. For example, an agreement with a minor or an agreement to sell illegal drugs can not be enforced by law and is void. 3
    1. Section 2(h), The Indian Contract Act, (Act No. 9 of 1872) [↩]
    2. Section 2(i), The Indian Contract Act, (Act No. 9 of 1872) [↩]
    3. Section 2(g), The Indian Contract Act, (Act No. 9 of 1872) [↩]

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