Difference between Void and Illegal Agreement
Basis |
Void Agreement |
Illegal Agreement |
---|---|---|
Meaning |
A contract that isn’t enforceable by law is void agreement. |
An agreement is illegal if the making of it is prohibited by the law. |
Object |
Not illegal. |
Illegal. |
Consequence |
When an agreement loses its enforceability by law, it becomes void. |
An illegal agreement is null and void ab initio, meaning it is unenforceable from the start. |
Prohibition by IPC |
No void agreements are not prohibited by IPC. |
Yes, illegal agreements are prohibited by IPC. |
Scope |
Wide. |
Narrow. |
Penalty |
The parties to a void agreement are not subject to any legal penalties. |
Parties to an illegal agreement may attract criminal offense and subject to penalty. |
Connected Agreements |
May not always be null and invalid |
All connected agreements are null and void. |
Remedy |
There are no applicable legal remedies since the contract is deemed invalid. |
Since it is seen as illegal and against the law, there are legal remedies possible. |
Avoidance |
Can be avoided by any party without resulting in legal repercussions. |
Can be avoided by both parties, but it may also give rise to legal action and be illegal. |
Example |
A contract that a minor has signed, as minors are not deemed to have the legal competence to engage into contracts. |
A contract for illegal narcotics, as it is prohibited by law to do such things. |
Difference between Void and Illegal Agreement
Void agreements and Illegal agreements are both types of contracts that are unenforceable by law. It is evident from the Indian Contract Act, 1872, that there is a fine line separating an illegal agreement from a void one. An illegal agreement is strongly forbidden by law and can result in penalties for the parties involved. A void agreement may not be banned by law.
Table of Content
- What is Void Agreement?
- What is Illegal Agreement?
- Difference between Void and Illegal Agreement
- Conclusion
- Difference between Void and Illegal Agreement- FAQs