As per the Indian Contract Act of 1872, it is important to understand the difference between a void agreement and a void contract. Although these terms may sound similar, they actually have significant differences that are important to know.
First, let’s discuss what each of these terms means. A void agreement is one that is not legally enforceable right from the start because it is against the law or public policy. For example, if two parties enter into an agreement to commit a crime, that agreement would be void ab initio, or from the beginning. Similarly, if the object of an agreement is illegal, such as a contract to sell drugs, that agreement would also be considered void.
On the other hand, a void contract is one that was initially valid but later becomes unenforceable due to changed circumstances. For example, if two parties enter into a contract to sell a house, but later discover that the house is actually owned by someone else, the contract would be void because the object of the contract is not possible.
Now, it is important to note that while these two terms have different meanings, they are often used interchangeably in everyday language. However, when it comes to legal matters, it is important to distinguish between the two.
In summary, a void agreement is one that is not legally enforceable from the start, while a void contract is one that was initially valid but later becomes unenforceable due to changed circumstances. Understanding the difference between these two terms is important when it comes to legal matters and can prevent confusion and misunderstandings.