When it comes to contracts, there are two important terms that you should be familiar with: void and voidable agreements. Both terms refer to a contract`s legality or enforceability, but they have different meanings. In this article, we`ll explore what void and voidable agreements are and how they apply to BCom (Bachelor of Commerce) students.
A void agreement is a contract that is not enforceable by law. It is essentially like the contract never existed in the first place. A void agreement can be considered void for various reasons. For example, if the agreement is illegal, against public policy, or involves a fraudulent act, it would be considered void.
In BCom, void agreements are studied under the Indian Contract Act, 1872. The Act outlines the various situations that can make an agreement void. For instance, an agreement that involves committing an illegal act, is against public policy, or is made by a person who is not competent to contract, is void. Students studying BCom would work through numerous examples of such agreements that fall under this category.
In contrast, a voidable agreement is a contract that is legally binding until one of the parties decides to cancel it. This means that, although the agreement is enforceable, it can be canceled by one or both parties due to specific circumstances. Some common reasons for voidable agreements include undue influence, coercion, or misrepresentation.
In BCom, voidable agreements are also studied under the Indian Contract Act, 1872. It is important for students to understand the various grounds under which an agreement can be voidable. For instance, if one party is under duress or is subject to undue influence, they may be able to cancel the contract. Alternatively, if one party has misrepresented the contract in a material way, the other party may have the right to cancel it.
In conclusion, void and voidable agreements are essential concepts that BCom students must understand. A void agreement is one that is not legally enforceable, whereas a voidable agreement is binding until one or both parties decide to cancel it. Being aware of the different scenarios that make an agreement void or voidable will help students to better understand contract law and to make informed decisions when entering into agreements.