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Contingent Contract
Prepared By: Mahendra Patel
Legality of Object
An agreement is a contract if it is made for a
lawful consideration and with a lawful
object (Sec. 10)
Every agreement of which the object or
consideration is unlawful is void.
Legality of Object
The consideration or object of an agreement is
unlawful, If
It is forbidden by law; or it is of such a nature that,
Permitted it would defeat the provisions of any law; or
It is fraudulent; or
It involves or implies injury to the person/property of
another;
The Court regards it as immoral, or opposed to public
policy.
No action is allowed on an illegal agreement.
Void Agreements
A void agreement is one which is not enforceable by law.
The following agreements are declared to be void.
1.An agreement made by incompetent persons (Sec.11).
2.Agreement made under mutual mistake of fact
(Sec.20)
3.Agreements the consideration or object is unlawful
(Sec.23)
4.Agreements the consideration or object is unlawful in
part. (Sec.24)
5.Agreement made without consideration is void
( Sec.25)
6.Agreement in restraint of marriage (Sec.26)
Void Agreements
7.Agreement in restraint of trade (Sec.27)
8.Agreement
in
restraint
of
legal
proceedings (Sec.28)
9.Agreement the meaning of which is
uncertain (Sec.29)
10.Agreement by way of wager (Sec.30)
11.Agreement contingent on impossible
events (Sec.36)
12.Agreement to do impossible acts. (Sec.56)
Void Agreements
1.An agreement made by incompetent persons (Sec.11).
Contract Must be made by competent parties, means
contracting parties must be major, sound mind and
not detain by law.
2.Agreement made under mutual mistake of fact (Sec.20)
Initially during contracting if mistake made by both the
parties regarding subject of contract and capacity to
perform
Such contact cancelled at initial point Void-ab-initio
3.Agreements the consideration or object is unlawful
(Sec.23)
If consideration or object is unlawful the agreement is void
Void Agreements
5.Agreement made without consideration is
void ( Sec.25)
In the absence of any essential element the
contract/agreement is not valid.
Void Agreements
6.Agreement in restraint of marriage (Sec.26)
Any promise made to restore or to obtain
advantage under marriage is void
e.g. Mr. A ready to pay B Rs. 50,000 if she
Marries with him within 1 year.
Take a note the an agreement which provides
for penalty upon remarriage may not be
considered as a restraint of marriage
Void Agreements
7.Agreement in restraint of trade (Sec.27)
Every agreement by which anyone is restrained
from exercising a lawful profession, trade or
business of any kind, is to that extant void
This is because constitution of india regards the
freedom of trade and commerce as a right
od every individual so no agreement can
deprive or restrain a person from exercising
such right
In above explanation That Extant means That
portion of agreement is void which is
considered as unreasonable or oppose to
public policy
Void Agreements
7.Agreement in restraint of trade (Sec.27)
Exception to the Rule Agreement in restraint
of trade
Void Agreements
7.Agreement in restraint of trade (Sec.27)
Exception to the Rule Agreement in restraint
of trade
1. Sale of Goodwill
1.
2.
3.
4.
2.
Partners agreement
Void Agreements
7.Agreement in restraint of trade (Sec.27)
Exception to the Rule Agreement in restraint
of trade
1. Sale of Goodwill
2. Partners agreement
1.
2.
3.
4.
Void Agreements
8.Agreement in restraint of legal proceedings
(Sec.28)
An agreement restricting enforcement of
right
Agreement Limiting the period of limitation
9.Agreement the meaning of which is
uncertain (Sec.29)
10.Agreement by way of wager (Sec.30)
11.Agreement contingent on impossible
events (Sec.36)
12.Agreement to do impossible acts. (Sec.56)
Void Agreements
7.Agreement in restraint of trade (Sec.27)
8.Agreement in restraint of legal proceedings
(Sec.28)
9.Agreement the meaning of which is uncertain
(Sec.29)
An un certain agreement means an
agreement the meaning of which is not
certain of capable of being made certain is
void agreement
10.Agreement by way of wager (Sec.30)
11.Agreement contingent on impossible events
(Sec.36)
12.Agreement to do impossible acts. (Sec.56)
Void Agreements
7.Agreement in restraint of trade (Sec.27)
8.Agreement in restraint of legal proceedings
(Sec.28)
9.Agreement the meaning of which is uncertain
(Sec.29)
10.Agreement by way of wager (Sec.30)
11.Agreement contingent on impossible events
(Sec.36)
Contingent agreement to do or not to do
anything, If an impossible event happens are
void whether the impossibility of event is
known to not to parties to contracting
12.Agreement to do impossible acts. (Sec.56)
Void Agreements
7.Agreement in restraint of trade (Sec.27)
8.Agreement in restraint of legal proceedings
(Sec.28)
9.Agreement the meaning of which is
uncertain (Sec.29)
10.Agreement by way of wager (Sec.30)
11.Agreement contingent on impossible
events (Sec.36)
12.Agreement to do impossible acts. (Sec.56)
Agreement to do impossible event is void
agreement like putting life in danger,
Wagering Agreements
An agreement between two person under
which money or moneys worth is payable
to another on happening or nonhappening of future uncertain event is
called wagering event
E.g. A promise to pay Rs. 1000 to B if its rain
on particular day, and B promise to pay
Rs. 1000 to A if it did not
Wagering Agreements
Essentials of a wagering agreement
1.
2.
3.
4.
5.
Example:
1. Lottery
2. Cross word puzzle
3. Share market trading
Wagering Agreements
Transaction held not wagers
Prize competitions which are games of skill,
intellectual intelligence, athletic, is not
wagering contract
Contract of Insurance
Horse race competition
Gambling
Wagering Agreements
Effects of wagering agreements
1.
2.
3.
4.
5.
Void Agreements:
Restitution
Restitution means
benefit
restore
or
return
of