State the difference between void and illegal agreements.
Answers
Answered by
0
Difference Between Void and Illegal Agreement
void agreement vs illegal agreementThe Indian Contract Act, 1872 has made it clear that there is a thin line of difference between void and illegal agreement. A void agreement is one which may not be prohibited under law, while an illegal agreement is strictly prohibited by law and the parties to the agreement can be penalized for entering into such an agreement.
A void agreement has no legal consequences, because it is null from the very beginning. Conversely, illegal agreement is devoid of any legal effect, since it is started. All illegal agreement are void, but the reverse is not true. If an agreement is illegal, other agreements related to it are said to be void.
By learning the distinction between the two types of agreement, you will be able to understand that which one is void and which is unlawful i.e. illegal. So, take a read of the given article carefully.
Content: Void Agreement Vs Illegal Agreement
Comparison Chart
Definition
Key Differences
Conclusion
Comparison Chart
BASIS FOR COMPARISON VOID AGREEMENT ILLEGAL AGREEMENT
Meaning An agreement, which lacks legal enforceability is void agreement. An agreement whose creation is forbidden by the court of law is an illegal agreement.
Consequence An agreement becomes void when it loses its enforceability by law. An illegal agreement is void ab initio i.e. void from the very beginning.
Prohibition by IPC No Yes
Scope Wide Narrow
Penalty Parties to void agreement are not liable for any penalty under law. Parties to illegal agreement are penalized.
Connected agreements May not necessarily be void, they may be valid also. All connected agreements are void.
void agreement vs illegal agreementThe Indian Contract Act, 1872 has made it clear that there is a thin line of difference between void and illegal agreement. A void agreement is one which may not be prohibited under law, while an illegal agreement is strictly prohibited by law and the parties to the agreement can be penalized for entering into such an agreement.
A void agreement has no legal consequences, because it is null from the very beginning. Conversely, illegal agreement is devoid of any legal effect, since it is started. All illegal agreement are void, but the reverse is not true. If an agreement is illegal, other agreements related to it are said to be void.
By learning the distinction between the two types of agreement, you will be able to understand that which one is void and which is unlawful i.e. illegal. So, take a read of the given article carefully.
Content: Void Agreement Vs Illegal Agreement
Comparison Chart
Definition
Key Differences
Conclusion
Comparison Chart
BASIS FOR COMPARISON VOID AGREEMENT ILLEGAL AGREEMENT
Meaning An agreement, which lacks legal enforceability is void agreement. An agreement whose creation is forbidden by the court of law is an illegal agreement.
Consequence An agreement becomes void when it loses its enforceability by law. An illegal agreement is void ab initio i.e. void from the very beginning.
Prohibition by IPC No Yes
Scope Wide Narrow
Penalty Parties to void agreement are not liable for any penalty under law. Parties to illegal agreement are penalized.
Connected agreements May not necessarily be void, they may be valid also. All connected agreements are void.
Similar questions