Presentated by:

Rimsha, Rabbia, Hajra and Sehreen

Presented to:
Atif Mir khan
Roll no:
6, 44, 84 and 85
Void agreement:

 Definition:
 According to section 2
An agreement not enforceable by law is a void agreement.
 According to section 10
For the a valid contract it is necessary that an agreement
must not be one of those which have been expressly
declared void by law.
Void agreement:
1) Agreements in Restraint of Marriage
2) Agreements in Restraint of a Trade
3) Agreements in Restraint of Legal Proceedings
4) Agreements, Meaning of which is Not Certain
5) Agreements By Way Wager
6) Agreements Contingent on Impossible Event
7) Agreements To Do an Impossible Acts
Agreement in restraint of marriage:
 Definition:
According to Sec.26
“Every agreement in restraint of the marriage of any
person, other than minor, is void.”Difference between a
positive promise to marry a particular person And but
restrictive agreement containing a promise not to marry
anybody else Every person has the right to marry a person
of his choice.
Example:
 A agrees with B that she will not marry C. it is a void
agreement.
 A promise his father F that he will marry . It is valid
contract.
 P promise to marry L and to pay Rs 2000 to L if he
married someone else. Later, P married X. Held L could
not recover the sum as the agreement was in restraint of
marriage.
Agreements in Restraint of a Trade:
 Definition:
 According toSec.27
 “Every agreement by which anyone is restrained from
exercising a lawful profession, trade or business of any
kind, is to that extent void.” Every person has a right to
carry on any lawful trade, business or profession. That is
called Agreements in Restraint of a Trade
Example:
 M promise to close down his business against the promise
of R to pay some amount. It is an agreement in restraint of
lawful business.
 Two electronic companies agreed not to employ the other
company's staff for 5 year. Court held that this was an
agreement in restraint of trade.
EXCEPTIONS
Sale of Goodwill:

 Where a seller sells his business along with the goodwill

and agrees not to carry on a similar business within
reasonable local limits, such an agreement is valid.
 Example:
 A sells his bakery to B with goodwill of Rs 1 Lac and
agrees not to open a bakery anywhere in Pakistan. The
agreement is void.
Partners Agreement:
 The following agreement among partners in partnership are
void:
 A partner may agree not to carry on a business similar to that of
a partnership while he is a partner.
 A retiring partner may agree with other partner that he will not
carry on a business within specified period or specified local
limits.
 The partner may agree on dissolution of firm that some of them
will not carry on a similar business within specified period or
specified local limits.
 Any partner, on the sale of goodwill, may agree with the buyer
not to carry on a similar business within specified period or
specified local limits.
Example:
A joins the firm of B and C, who deal in
space parts at the mall, Lahore. A agrees
that after leaving the firm, he will not
carry on similar business at the mall for 2
year. Void agreement
Trade Combination:
 An agreement among various businessmen to regulated
price output, etc is a valid agreement. But a trade
combination which creates monopoly and is against public
interest is void.
 Example:
 An agreement between two firms to avoid competition is
void because it created monopoly and is against public
interest.
Service agreement:
 An agreement of service may contain a condition that
employee shall not work anywhere else during the period
of employment.
 Example:
 A doctor joint the army on the condition that during
service he cannot do private practice. The agreement is
void.`
Agreements in Restraint of Legal
Proceedings:
 Definition:
 According to (Sec.28)
 “Every agreement, by which any party thereto is restricted
absolutely from enforcing his right sunder or in respect of
any contract, by the usual legal proceedings in the
ordinary tribunals, or which limits the time within which
he may thus enforce his rights, or which provides for
forfeiture of any rights arising from contract, if suit is not
brought within a specified time, is void to the extent.
Example:
 A agree to sale sugar to B. both agree that in case of
breach of contract by any party, none of them would go
the court this is void.
 A give Rs 1 Lac to B as loan for 1 year. A agrees that if B
fails to return the loan, A must sure within 2 year
otherwise B will not be able liable. The agreement is void.
Exception:

 The following are exception to the about rules.

 The partner many agree that in case of dispute among the
parties, the dispute will be referred to arbitration.
 The parties may agree that neither party shall appeal
against the lower court decision.
 The parties may agree to select one of the two courts
which are equally competent to try the lawsuit.
Example:
 A sell 50 clocks to B. both agree that any dispute will be
referred for arbitration and not to the court. It is valid
agreement.
 A sell good from Sialkot to B in Lahore. In case of
disputed, they may sure in the Sialkot court or Lahore
court. Both agree that they will sure in Lahore court. The
agreement is valid.
Uncertain agreement :
 Section 29 states, “Agreement the meaning of which
is not certain, or capable of being made certain, are
void.” its mean that term of an agreement must be
clear, complete and certain. The ambiguity may be
regarding existence, quality, quantity, price or title of
the subject matter of the agreement.
 Example:
A agrees to sell his horse to B for 500 rupees or 700
rupees. it is not clear which is the sale price. The
agreement is void.
Agreements By Way Wager

 Wager mean a bet. A wager is an agreement to pay

money worth on the happening or non happening of a
future event. Each party has equal chance to win or
loss the bet. The parties should have no interest in the
agreement other than the betting amount.
Essential of Wager:
There are following essential of wager:
1. There must be a promise to pay money worth.
2. The promise depend on happening or non-happening of an
event.
3. The event must be uncertain. If one party has control over the
happening of the event, the transaction is not a wager.
4. One party is to win and other is to lose. If one party wins but
other does not lose, it is not a wagering in the event.
5. The party should have no interest in the event.
6. The parties should have interest in the betting amount only.
Example:
 Ali agrees to pay 400 rupees to Sami if it rains today.
If it does not rain, Sami will pay 400 rupees to Ali. It is
a wagering agreement.
 Nature of wagering agreement:
wagering agreements are void. In case of braeach of
such agreement’ nothing can be recovered through
court. [sec. 30]
 Exception:
An agreement to contribute for the payment of price in
from of cash up to Rs. 500 or more or in any other form
to the winner of any horse race is valid.
Agreements Contingent on Impossible Event

 A contingent agreement is an agreement the

performance of which depends upon the happening
and non-happening of an uncertain events. An
agreement to do or not to do any act if an impossible
events happens is void. The nature of agreement will
not change even if the parties to agreement are not
aware of such impossibility.[sec.36]
Example:
 A agrees to pay 1 Lac rupees to B if he marries A’s
daughter. A’s daughter is already dead. The agreement
is void.
Agreements To Do an Impossible Acts

 An agreement to do an act impassible in itself is void. It means

an agreement to do an impossible act is a void agreement. [Sec.
56, Para 1]
 Example:
A agrees with B to discover gold by magic. The agreement is void.
special cases:
 Commercial Transaction;
an agreement where delivery of good will be given or taken at
a future date is void contract. But an agreement where one party
agrees to pay the difference of price at current and future date is
wagering agreement. The parties does not take delivery of good,
they just promise to pay the difference of price.
Insurance Contract:
Insurance contract is a void contract even through the
payment of money depend on the happening of a future
uncertain event. It differs from wagering agreement
because it has an insurable interest that is based on
scientific calculation of risk and is beneficial to the public.
 Lottery:
A lottery is a game of chance. They lottery business is a
wagering transaction. Such a business is illegal. If lottery is
authorized by the government, the person conducting the
lottery will not be guilty of criminal offence.
Crossword Puzzles:
 Where prize depend upon chance, it is a lottery and
therefore a wagering transaction. But it prizes depend
upon skill and intelligence, it is valid transaction.
Any question?