What Is a Void Agreement?

A void agreement is not a legally binding contract.

Companies and individuals sign commercial and non-commercial contracts as part of business activities. Some contracts are void agreements, and parties to an agreement always must seek legal guidance if they do not understand contract terms.

Definition

A void agreement is a contract that courts cannot enforce because the agreement does not meet the legal requirements of a contract, according to ReportBD.com, an education and legal resources portal.

Types

Void agreements typically have clauses or purposes that are illegal. An agreement with an unlawful purpose is implicitly void. Illegal acts vary by location but generally include criminal enterprises, agreements with minors or individuals lacking legal capacity and contracts based on impossible events.

Illustration

A company signs a sponsorship contract with a promising and talented 10-year old baseball player in the absence of the child's parents or legal tutor. The contract is a void agreement, and courts will not enforce it.

Misconceptions

A void agreement is distinct from a voidable agreement. A voidable contract is a valid agreement, but one party may legally cancel the agreement, depending on contract clauses.

References

• ReportBD: Website for Students & Educators: Void Agreement
• ChestofBooks: Void, Voidable And Unenforceable Agreements