What is Illegal Agreement?
An illegal agreement is one that contravenes the law, is criminal in nature, goes against public policy, or is immoral. The agreements that are collateral to the original agreement are also null and invalid since these agreements are void ab initio. The transaction related to or incidental to the primary agreement is referred to here as the collateral agreement. Entering into an illegal agreement is considered an offense in the eyes of the law since it is severely forbidden. Accordingly, the Indian Penal Code penalizes the parties for the same offense. An agreement with ambiguous terms, an agreement to kill someone, etc. are a few instances of illegal agreements.
Key Features of Illegal Agreement:
- An illegal agreement is one that is defined as being against the law and is thus deemed illegal.
- An illegal agreement that cannot be enforced by any party.
- Illegal agreements are usually the result of breaking a law or piece of legislation.
- An illegal agreement cannot be upheld by the legal system.
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