Friday, July 8, 2011

Void and voidable contacts

What is void ?
Voids means not valid or legally binding .

Note : void has the same meaning as null and void

Void contract / Void agreement
  • An agreeement ( or contract ) is void if : 
(i) both parties to the agreement are mistaken to a matter of fact which is essential to the agreement , or mistaken to a matter of law which is not in force in Malaysia , but is essential to the agreement .
(ii) the consideration or object of the agreement is unlawful , i.e:
  • it is forbidden by law 
  • it is of such nature that , if promised , it would defeat any law . 
  • it is fraudulent 
  • it involes or implies injury to the person or property of another 
  • the court regards it as immoral  , or opposed to public policy . 
(iii) the agreement is made without consideration , unless the agreement is
- a written promise made on account of natural love and affection between parties standing in near relation to each other .
-a promise to compensate for a past voluntary act
- a promise to compensate a person who did an act which the promisor was legally compellable to do
- A written promise to pay a debt barred by limitation law .
(iV) the agreement is in restraint of marriage of parties who are not minors
(v) the agreement restrains anyone from exercising a lawful profession , trade or business .
(vi) the agreement absolutely restricts any party to the agreement from enforcing his rights under any contract by the usual legal proceedings in the ordinary tribunals.
(vii) the meaning of the agreement is not certain or capable of being made certain .
(viii) agreements by way of wager ; no suit shall be brought to recover debts based on wagers
(ix) the agreement is to do an act which is impossible in itself .

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