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When after the formation of a valid contract, an event happens which makes the performance of contract impossible, then the contract becomes:
- a)void
- b)voidable
- c)valid
- d)illegal
Correct answer is option 'A'. Can you explain this answer?
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When after the formation of a valid contract, an event happens which m...
Void ab initio literally means ‘void from the beginning’. In terms of contract law, contracts which are void ab initio mean that it is void from the very beginning where the agreement was made. It was never a contract, therefore it can’t create any legal relation, and therefore parties of the contracts could not rely on what was agreed in said agreement [1] . In an event of frustration, the contract is void.
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When after the formation of a valid contract, an event happens which m...
Void
After the formation of a valid contract, there are certain circumstances that can make the performance of the contract impossible. In such cases, the contract becomes void. Let's understand this concept in detail.
Formation of a Valid Contract
- A valid contract is formed when there is an offer, acceptance, consideration, legal capacity, and lawful object.
- Offer: One party makes a proposal to another party.
- Acceptance: The other party agrees to the terms of the offer.
- Consideration: Both parties provide something of value.
- Legal capacity: Both parties must have the legal capacity to enter into a contract.
- Lawful object: The purpose of the contract must be legal.
Impossibility of Performance
- After the formation of a valid contract, an event may occur that makes it impossible for one or both parties to perform their obligations under the contract.
- This impossibility may arise due to various reasons such as natural disasters, death or incapacity of the parties, change in law, etc.
- The event must be beyond the control of the parties and not due to their own fault or negligence.
Void Contract
- When such an event occurs and makes the performance of the contract impossible, the contract becomes void.
- A void contract is one that is considered null and void from the beginning, as if it never existed.
- It has no legal effect and the parties are released from their obligations.
- Any consideration given under a void contract must be returned.
Difference from Voidable and Illegal Contracts
- A void contract is different from a voidable contract and an illegal contract.
- A voidable contract is one where one party has the option to either enforce or rescind the contract due to a defect in formation, such as fraud, undue influence, or mistake.
- An illegal contract is one that involves an unlawful object or purpose.
Conclusion
- When an event occurs after the formation of a valid contract that makes the performance impossible, the contract becomes void.
- It is important to understand the difference between void, voidable, and illegal contracts to ensure clarity in contractual agreements.
After the formation of a valid contract, there are certain circumstances that can make the performance of the contract impossible. In such cases, the contract becomes void. Let's understand this concept in detail.
Formation of a Valid Contract
- A valid contract is formed when there is an offer, acceptance, consideration, legal capacity, and lawful object.
- Offer: One party makes a proposal to another party.
- Acceptance: The other party agrees to the terms of the offer.
- Consideration: Both parties provide something of value.
- Legal capacity: Both parties must have the legal capacity to enter into a contract.
- Lawful object: The purpose of the contract must be legal.
Impossibility of Performance
- After the formation of a valid contract, an event may occur that makes it impossible for one or both parties to perform their obligations under the contract.
- This impossibility may arise due to various reasons such as natural disasters, death or incapacity of the parties, change in law, etc.
- The event must be beyond the control of the parties and not due to their own fault or negligence.
Void Contract
- When such an event occurs and makes the performance of the contract impossible, the contract becomes void.
- A void contract is one that is considered null and void from the beginning, as if it never existed.
- It has no legal effect and the parties are released from their obligations.
- Any consideration given under a void contract must be returned.
Difference from Voidable and Illegal Contracts
- A void contract is different from a voidable contract and an illegal contract.
- A voidable contract is one where one party has the option to either enforce or rescind the contract due to a defect in formation, such as fraud, undue influence, or mistake.
- An illegal contract is one that involves an unlawful object or purpose.
Conclusion
- When an event occurs after the formation of a valid contract that makes the performance impossible, the contract becomes void.
- It is important to understand the difference between void, voidable, and illegal contracts to ensure clarity in contractual agreements.
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When after the formation of a valid contract, an event happens which makes the performance of contract impossible, then the contract becomes:a)voidb)voidablec)validd)illegalCorrect answer is option 'A'. Can you explain this answer?
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