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Agreement declared void - Agreement, Business Law Video Lecture | Business Law - B Com

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FAQs on Agreement declared void - Agreement, Business Law Video Lecture - Business Law - B Com

1. What is the concept of a void agreement in business law?
Ans. A void agreement in business law refers to a contract or agreement that lacks legal validity from the beginning. It is considered as if the agreement never existed and has no legal consequences. This can happen due to various reasons, such as the agreement being made with a minor, being against public policy, or involving illegal activities.
2. What are the consequences of declaring an agreement void?
Ans. When an agreement is declared void, it means that the contract is considered null and void from the beginning. The consequences may vary depending on the specific circumstances and applicable laws. Generally, the parties involved are released from their obligations under the agreement, and any benefits received must be returned. Additionally, any actions or transactions made based on the void agreement may be reversed or corrected.
3. What are some common reasons for declaring an agreement void?
Ans. There are several common reasons for declaring an agreement void in business law. Some of the most common reasons include: - The agreement involves illegal activities or is against public policy. - One or more parties lack the legal capacity to enter into a contract, such as being a minor or mentally incapacitated. - The agreement was entered into under duress, coercion, or fraud. - The terms of the agreement are impossible to perform or violate the law.
4. Can a void agreement be ratified or made valid in any way?
Ans. No, a void agreement cannot be ratified or made valid in any way. Since a void agreement lacks legal validity from the beginning, it cannot be validated or ratified by any subsequent actions or agreements. The only option for the parties involved is to create a new agreement, if legally possible, to replace the void one.
5. What is the difference between a void agreement and a voidable agreement?
Ans. The main difference between a void agreement and a voidable agreement lies in their legal consequences. A void agreement is considered null and void from the beginning, with no legal consequences. On the other hand, a voidable agreement is initially valid but can be canceled or voided by one or more parties due to certain legal grounds, such as fraud, misrepresentation, or undue influence.
33 videos|59 docs|18 tests
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