Illegal Agreement and Void Agreement: Understanding the Basics
In the world of business and contracts, agreements are the foundation of every business transaction. However, not all agreements are legally enforceable. In fact, there are two types of agreements that are not legally binding – illegal agreements and void agreements.
Illegal Agreement
An illegal agreement is an agreement that is against the law, public policy, or morality. Such an agreement is considered void from the very beginning, which means that it has no legal effect whatsoever.
Examples of illegal agreements can include agreements that involve the commission of a crime, agreements that involve the sale of illegal or prohibited goods or services, or agreements that are in violation of public policy, like an agreement that promotes discrimination.
It`s important to note that an illegal agreement cannot be enforced by the parties involved, even if they voluntarily entered into it. In addition, any money or property that has been exchanged under an illegal agreement cannot be recovered through a court of law, as the agreement is considered null and void.
Void Agreement
A void agreement, on the other hand, is an agreement that is legally invalid from the very beginning. This means that the agreement is unenforceable under any circumstances.
Examples of void agreements can include agreements that are based on the performance of an impossible task, agreements that are made under duress or coercion, or agreements that lack any consideration or mutual consent.
Unlike illegal agreements, void agreements cannot be ratified or validated by the parties involved. The court will not recognize such agreements as legally binding or enforceable, as they are deemed to be null and void from the very beginning.
Key Differences Between Illegal and Void Agreements
While illegal and void agreements may seem similar, there are several key differences between the two. The main difference is that an illegal agreement is an agreement that is against the law, while a void agreement is an agreement that is legally invalid.
Another key difference is that while an illegal agreement may result in criminal liability for the parties involved, a void agreement does not carry any legal or criminal repercussions.
Lastly, an illegal agreement cannot be enforced by the parties involved, while a void agreement cannot be ratified or validated by them. Both types of agreements are deemed to be null and void, but for different reasons.
In conclusion, it`s important for businesses and individuals to understand the fundamental differences between illegal and void agreements. Knowing what makes an agreement legally binding and enforceable can help avoid legal disputes, financial losses, and other negative consequences. It`s always wise to consult with a legal expert or professional before signing any agreements to ensure that they are legally valid and enforceable.