BCOC-133 BUSINESS LAW CHAPTER-6 VOID AGREEMENTS AND CONTIGENT CONTRACT

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BCOC-133 BUSINESS LAW
CHAPTER-6 VOID AGREEMENTS AND CONTIGENT CONTRACT

VOID AGREEMENT

A void agreement is like a deal that’s not really deal. It’s not legally binding because it breaks some law or goes against certain principles. So its kind of an agreement that doesn’t count in the eye of the law.

Void agreements are:-

  1. Agreements in restrain of marriage:-any deal that tries to prevent someone

    from getting married is void other than a minor.

  2. Agreement in restrain of trade:-deals that limit person’s freedom to choose

    their profession or trade are consider void.

Exceptions:- statutory exception

• Sale of goodwill:- the seller of goodwill of a business may agree with the buyer therefore not to carry on similar business within specified local limits. Such restraint are shall be valid

Certain restraints in partnership:-

  • A partner shall not carry on any business other than of the firm while he is a

    partner

  • A partner on ceasing to be a partner will not carry on similar to that of the firm

    within specified period or local limits

  • A partner may upon the sale of goodwill of a firm make an agreement

    a) Under judicial interpretation:-

    • Trade combination

    • Exclusive dealing agreement

    • Service agreement

  1. Agreements in restrain of legal proceedings

    • Restriction on legal proceeding:-an agreement by which a party is restricted absolutely from enforcing his legal rights under or respect of any contract by the usual legal proceedings In the ordinary tribunals

    • Limitation of time:-the parties restrict the time with in which an action may be brought so as to make it shorter than the prescribed by the law of limitation

  2. Uncertain agreement:-if the terms of an agreement are too un clear to understand, it may be void.it can arise from vague language, incomplete details or conditions that are difficult to understand.

WAGERING AGREEMENT:-
A Wagering agreement commonly known as a betting contract, is a type of arrangement wherein two parties agrees to change money or valuable based on the outcome of an uncertain event like a game or contest . these agreements are generally considered void in legal terms.
ESSENTIALS FOR WAGERING AGREEMENT

o Uncertain event:- the agreement must be based on the outcome of an uncertain event. If the result is already known or fixed it doesn’t qualify as a wager.

o Mutual consent:-both parties must willingly agree to the term of the bet. Coercion or lack of genuine consent can be invalidate the agreement

o Neither party have control over the event:-neither party should have control over the happening of the event one way or other.

o No other interest in the event:- neither party should have interest in the happening of the event. Other than sum or stake he will win or lose

o Promise to pay money or money’s worth:-the promise should be pay money or money’s worth only

EFFECTS OF WAGERING AGREEMENT

When you make a bet or wager with someone , the agreement you have is usually not enforceable by law. This means that one person doesn’t follow through with the bet, the other person can’t make them do it in court. Wagering agreements are often seen as not okey legally because they involving betting on uncertain things like games or contests. The law tends to stay away from supporting these agreement to gambling.
Lotteries :- wagering transaction amounts to lottery is illegal

Exceptions to wagering agreements :-

o Skill based contest: o Insurance contracts o Gaming license

AGREEMENT TO DO IMPOSSIBLE ACT:- an agreement to do an act impossible in itself is a void. Which means impossible to perform

RESTITUTION:-when an agreement or contract becomes void, the person who has received benefit or advantage under such agreement must restore or compensate where it has received

CONTINGENT CONTRACT

A contingent contract is like a deal with a “what if” condition. It only becomes a real deal if something specific happens or doesn’t happen. If that something occurs, both sides have to stick to what they promised, but if that something doesn’t happen, the deal might not be count or it could be change. These kinds of contracts are used things like insurance, where getting money depends on certain events, making the agreements depend on what might or might not take place

RULES REGARDING ENFORCEAMENT OF CONTINGENT CONTRACTS

  • Condition met:- if the event or condition outlined in the contingent contract happens, then the contract become enforceable

  • Condition not met:- if the condition doesn’t occur , the contract maight be void

  • Impossible event:- if the specified events becomes impossible to occur , the

contract might also be voided. Court generally don’t enforce contract based on

impossible condition

2. A wagering agreement is of contingent nature while contingent may not have wagering nature
3. A wagering agreement is void while contingent is valid
4. In a wagering agreement parties have no other interest in the subject except winning or losing of wagering amount while it is not in contingent

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