An agreement void refers to a contract or agreement that is considered to have no legal effect from the beginning. If a contract is void, it means that it is not legally binding, and any party to the agreement can walk away from it without any legal consequences.
There are various reasons why an agreement may be considered void. Here are some of the most common reasons:
1. Lack of Capacity
If one party to an agreement lacks the legal capacity to enter into the contract, such as being a minor, mentally incapacitated, or intoxicated, the contract will be considered void.
2. Illegality
An agreement that involves actions that are illegal, such as selling drugs or engaging in fraud, is considered void. Additionally, agreements that are against public policy, such as agreements that waive your legal rights, are also considered void.
3. Duress
If one party to an agreement is forced to enter into the contract under duress, such as being threatened with violence or being blackmailed, the agreement will be considered void.
4. Misrepresentation
An agreement that is based on fraudulent or misleading information provided by one party is considered void. For example, if a car salesman misrepresents the condition of a vehicle, any agreement signed for the purchase of the car would be considered void.
5. Mistake
If both parties to an agreement make an honest mistake about the terms of the agreement, the contract may be considered void. For example, if a seller mistakenly lists the wrong price for a product, the resulting agreement may be void.
It`s essential to note that a void agreement is different from a voidable agreement. A voidable agreement is a contract that, while initially valid, can be made void if one party chooses to do so. For example, a contract signed by a minor is voidable by the minor but not necessarily void.
In conclusion, a void agreement is one that has no legal effect and therefore cannot be enforced. Understanding the common reasons for an agreement to be considered void can help you avoid entering into unenforceable contracts and protect your legal interests.