Void Agreement and Its Types: Everything You Need to Know
A void agreement is a legal term that signifies a contract that is not legally binding and has no legal effect whatsoever. In other words, it is an agreement that is not enforceable by law since it is invalid from the outset. There are different types of void agreements, and it is important to know about them to avoid getting into legal trouble.
Types of Void Agreements
1. Agreement without consideration: A contract that is made without consideration is void. Consideration refers to something of value that is given by one party to another in exchange for something else. For example, if you promise to give someone a car but they do not offer anything in return, the contract is void since there is no consideration from the other party.
2. Agreement against public policy: Any agreement that goes against public policy is void. For instance, if you agree to sell drugs to a person, the contract is void since it is against public policy.
3. Agreement with a minor: A contract made with a minor is void since minors do not have the legal capacity to enter into contracts. In most cases, a minor cannot be held accountable for the terms of the agreement because they are not yet considered adults.
4. Agreement with an insane person: A contract made with someone who is insane or mentally incapacitated is void. Since they are not in the right state of mind to make informed decisions, any contract they enter into is deemed void.
5. Agreement in restraint of marriage: Any contract that restricts a person`s freedom to marry is void. For example, if you sign a contract that prohibits you from marrying a person of a certain religion or race, it is deemed void.
6. Agreement in restraint of trade: Any contract that restricts a person`s freedom to engage in a trade is void. For instance, if you sign a contract that restricts you from starting a competing business, it is deemed void.
As a professional, it is important to have a good understanding of the legal terms used in various fields. Knowing about void agreements and their types will help you avoid legal issues and ensure that your contracts are legally binding. By avoiding these types of void agreements, you can protect yourself and your business from any legal disputes that may arise.