What makes a contract void?

Over 1M Answers AvailableCategory: BusinessWhat makes a contract void?
Angelmimi asked 1 year ago
1 Answers
Angelmimi answered 1 year ago

A contract is said to be void if it has any or a number of these elements.

  • If it is illegal

A contract is void if it is illegal from the very moment it is made. As indicated earlier pouring a toxic waste in public is illegal according to the law then if a company enters into agreement to collect another companies toxic waste and dump this in a public place such a company cannot seek redress in court if it was not paid in court because the activity it sought to perform is an illegal act.

  • If declared null and void by a court

A contract is also void if it is legal but have been declared by a court as null and void perhaps because the court is of the view that the contract as it stood violates certain basic principles such as human right, or that it is not fair to either party or because the contract goes against a policy made by the government of the country in which the business is located.

  • If the laws of the land change

A contract can also be termed as a void contract if there has been changes in the law of the land or policies made by the government which have made it untenable in law.

  • None compliance with the provisions of the contract

A contract can also be declared void if the provisions in the contract has not been fully complied with by both parties.

  • Absence of capacity to contract

Lack of capacity to contract (such as arises from being an infant or minor, intoxicated, or insane) automatically makes a contract void. A contract that is void only in one or few parts may be saved by the process of severance. Not to be confused with voidable contract.