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Difference between invalid contract and canceled contract

A null agreement null ab-initio, essentially null since formed. On the other hand, a cancellation contract valid at the time of creation, but eventually becomes invalid, due to certain circumstances, which are beyond the control of the interested parties.

In more precise terms, it can be stated that a nullity agreement, always invalid, but if we talk about the nullity contract, applicable at the beginning, but later misses it due to changes in government policies or in some other reason. So, here we will have a thorough discussion on the difference between void chord and void contract, so let's start.

Comparative graph

Basis for comparison Invalid agreementNull contract
Sense The null clause refers to an agreement that, as required by law, is not applicable and has no legal consequences. The null contract implies a valid contract, which ceases to be applicable by law, becomes a null contract, when it lacks enforceability.
Empty ab-initio empty from the beginning. valid at the beginning but later it becomes empty.
Validity period Never valid valid, until he ceases to be executive.
The causes Because of the absence of one of the most essential. Due to the impossibility of performance.
Prerequisite of the contract When the agreement is created, all the prerequisites of the contract are not met, thus rendering it void. When the contract is stipulated, all the prerequisites of the contract are met, which due to certain circumstances becomes null afterwards.
Return In general, the return is not allowed, however, the court can grant the restitution for reasons of equity. The refund allowed when the contract discovered as nothing.

Definition of Void Agreement

A void agreement defined in section 2 (g) of the Indian Contract of 1872, as an agreement that cannot be applicable by law, ie that such agreements cannot be challenged in court. Such an agreement has no legal consequences and therefore does not confer any rights on the parties concerned. A null agreement is void from the day, is created and can never be transformed into the contract.

To become executive, an agreement must comply, all the essential elements of a valid contract, described in section 10 of the act. Therefore, in the case of non-compliance of one or more essential elements of a contract, during its creation, the agreement becomes void. Some agreements that are explicitly declared as null include:

  • Agreement with incompetent parties, such as minor enemies, madmen and aliens.
  • Agreement whose consideration or illegal object.
  • The agreement that limits a person to marry.
  • An agreement in which both parties find themselves in the error of fact, material of the agreement.
  • The agreement that limits trade.
  • Betting agreements, etc.

Example : Suppose that Jimmy offers David (minor) the supply of 1000 kg of wheat for 20,000 rupees, on a certain future date, but B does not provide the quantity of wheat indicated to Jimmy. Now, Jimmy cannot sue David, since David is a minor and an agreement with less than ab-initio.

Definition of Void Contract

Section 2 (j) of the Indian Contract Act, 1872 defines Void Contract as a contract that no longer remains a valid contract and cannot be executed in court. These contracts have no legal effect and cannot be applied by either party.

The void contracts are valid, when they are stipulated, as they comply with all the conditions of enforceability, established in section 10 of the deed and bind the parties, but later become void due to the impossibility of execution. These contracts become inapplicable in the eyes of the law due to:

  • Impossibility to control
  • Change of law
  • Later illegality
  • Repudiation of the cancelable contract
  • Contingent contract etc.

Example : suppose that Nancy, a popular dancer who contracts with the Alpha company, dances in a show. Unfortunately, he encountered an accident a few days before the event, in which his legs were seriously injured and not allowed to dance by the doctor. In this case, the contract becomes void.

Key differences between Invalid Agreement and Void Contract

The following points are noteworthy as regards the difference between void agreement and void contract:

  1. A null agreement one, which according to the law n not executive n creates any legal consequence. The nullity contract, on the other hand, a contract that is valid at the time of the formation but becomes inapplicable, due to impossibility or illegality.
  2. A null empty chord since it was created. Conversely, a void contract valid at the time of creation, but later becomes null.
  3. A null agreement is never valid, while a null contract is a valid contract, as long as it is not enforceable.
  4. A null null agreement due to the absence of one or more necessary elements that result in a contract. Conversely, a cancellation contract one that becomes void due to the inability to provide services.
  5. The null agreement does not meet the prerequisites of a valid contract and, for this reason, considered invalid. Conversely, the contract void one that meets all the requirements of a valid contract, but cannot be applied due to unforeseen circumstances, therefore it becomes void.
  6. Restitution or restoration is not granted in the event of a nullity agreement, although in certain circumstances, restitution is permitted for reasons of equity. On the contrary, the refund granted to the interested party when the valid contract, eventually becomes null.

Conclusion

Therefore, with the discussion and example above, you may be able to understand the terms in detail. While a null agreement does not create any legal obligation. On the other hand, the legal obligations created during the formation of a valid contract come to an end, when the contract becomes void.