Void agreements are contracts or agreements that have no legal effect. These are agreements that are considered null and void from the moment they are made, and they cannot be enforced by either party. This can happen for a variety of reasons, including when the contract is against the law, against public policy, or when one or both parties lack the capacity to enter into a legal agreement.
One of the most common reasons for a contract to be void is when it is against the law. This can include contracts that involve illegal activities such as drug trafficking or prostitution. It can also include contracts that violate regulations set forth by government agencies or violate the constitution. In these cases, the contract is deemed null and void because it is not legally permissible to enter into such an agreement.
Another reason why a contract may be considered void is when it is against public policy. This refers to contracts that are considered harmful to public interest or welfare. For example, an agreement to restrain trade or restrict competition is typically deemed to be against public policy. Similarly, contracts that require a person to waive their legal rights are also usually considered to be void agreements.
Capacity is another factor that can make a contract void. If one or both parties lack the legal capacity to enter into a contract, the agreement will not be enforceable. This can occur if one of the parties is a minor or if one of the parties is mentally incapacitated.
It`s important to note that void agreements are different from voidable agreements. Voidable agreements are contracts that are initially valid but can be invalidated by one or both parties. This can occur if one of the parties is coerced into the agreement or if there is a mistake in the terms of the contract.
In summary, void agreements are contracts or agreements that are considered null and void from the moment they are made. They cannot be enforced by either party since they have no legal effect. These agreements are deemed void for a variety of reasons, including when they are against the law, against public policy, or when one or both parties lack legal capacity. It`s important to understand the difference between void and voidable agreements, as they can have significant legal implications.