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Void and Illegal

(Querist) 10 November 2008 This query is : Resolved 
What is the distinction between void and illegal in contract? Can any one illustrate the difference between the two? Thanks in advance.
Tribhuwan Pandey (Expert) 10 November 2008
Void Contract-is one which from the beginning has no legal effect. A contract, which ceases to be enforceable by law, becomes void, when it ceases to be enforceable (Section 2(j) Indian contract Act)i.e. contract with minor.

Illegal contact-a contract is illegal if it involves doing something illegal or contrary to public policy. i.e. contract to supply ammunition to the militants.

Void contract is not necessarily illegal, an illegal contract is often void. However the consequences of an illegal contract differ somewhat from those usually produced by simple void contract, so illegal contracts are treated by separate treatment.
N.K.Assumi (Querist) 10 November 2008
Thank you Tribhuwan Ji, Now in a given situation 1.The law says that an agreement is forbidden, is it void or illegal? In the second situation the law says that if the agreement is made the Court shall not enforce it, is it illegal or void? Thanking you in advance.
podicheti.srinivas (Expert) 11 November 2008
Dear,
Ifthe law says that it should not be done it shgould not be done and the same is unenforceable by law.It is nothing but a void contract.The law is restricting you from entering into such contract,when it is barred by law and the said contracts are unenforceable by the court of law as they do not have any legal sanctity.
RAKHI BUDHIRAJA ADVOCATE (Expert) 11 November 2008
Void Contract-is one which from the beginning has no legal effect. A contract, which ceases to be enforceable by law, becomes void, when it ceases to be enforceable (Section 2(j) Indian contract Act)i.e. contract with minor.

Illegal contact-a contract is illegal if it involves doing something illegal or contrary to public policy. i.e. contract to supply ammunition to the militants.

Void contract is not necessarily illegal, an illegal contract is often void. However the consequences of an illegal contract differ somewhat from those usually produced by simple void contract, so illegal contracts are treated by separate treatment.
Tribhuwan Pandey (Expert) 11 November 2008
The word 'forbidden' means prohibited by law, unlawful. In general rule of interpretation its interpretation is not authorized by law or contrary to law. The act doing against the law is illegal. The word forbidden means unlawful has practically the same meaning as illegal [Chandai Vs Emperor AIR 1933 All 91]hence an agreement is forbidden is illegal contract. The second situation it depends on the nature of agreement in what circumstances of agreement it is said Court shall not enforce. It may be either void or illegal.
Suresh Kr. Mitruka (Expert) 12 November 2008
The contract which has not been executed with competency, with free consent, for lawful consideration and for lawful object are all illegal contract. when the contract is illegal, the party may approach to Court for setting aside the agreement, but in void agreement, neither party can ask for any relief from the Court.
G. ARAVINTHAN (Expert) 13 November 2008
The term void has a precise meaning that has sometimes been confused with the more liberal term voidable. Something that is voidable may be avoided or declared void by one or more of the parties, but such an agreement is not void per se.

ILLEGAL. Contrary to law; unlawful.
2. It is a general rule, that the law will never give its aid to a party who has entered into an illegal contract, whether the same be in direct violation of a statute, against public policy, or opposed to public morals. Nor to a contract which is fraudulent, which affects the defendant or a third person.
3. A contract in violation of a statute is absolutely void, and, however disguised, it will be set aside, for no form of expression can remove the substantial defect inherent in the nature of the transaction; the courts will investigate the real object of the contracting parties, and if that be repugnant to the law, it will vitiate the transaction.
4. Contracts against the public policy of the law, are equally void as if they were in violation of a public statute; a contract not to marry any one, is therefore illegal and void. See Void.
5. A contract against the purity of manners is also illegal; as, for example, a agreement to cohabit unlawfully with another, is therefore void; but a bond given for past cohabitation, being considered as remuneration for past injury, is binding. 4 Bouv. Inst. n. 3853.
6. All contracts which have for their object, or which may in their consequences, be injurious to third persons, altogether unconnected with them, are in general illegal and void. Of the first, an example may be found in the case where a sheriff's officer received a sum of money from a defendant for admitting to bail, and agreed to pay the bail, part of the money which was so exacted. 2 Burr. 924. The case of a wager between two persons, as to the character of a third, is an example of the second class. Cowp. 729; 4 Camp. 152; 1 Rawle, 42; 1 B. & A. 683. Vide Illicit; Unlawful.


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