Void Contract: This is a contract, which was originally valid, but subsequently, becomes void due to circumstances beyond the contr…
Void Contract:
This is a contract, which was originally valid, but subsequently,
becomes void due to circumstances beyond the control of the parties. This is
termed as supervening impossibility or doctrine of frustration.
becomes void due to circumstances beyond the control of the parties. This is
termed as supervening impossibility or doctrine of frustration.
Doctrine
of frustration
of frustration
A provision in the legal system for the discharge of a
contract, where, subsequent to its formation a charge of circumstances renders
the contract legally or physically impossible, is known as doctrine of
frustration. It covers all cases where the agreement has been terminated by
supervening events beyond the contract of either party.
contract, where, subsequent to its formation a charge of circumstances renders
the contract legally or physically impossible, is known as doctrine of
frustration. It covers all cases where the agreement has been terminated by
supervening events beyond the contract of either party.
Cases When A Valid Contract Turns Void:
(a) Upon cancellation of a voidable contract
(b) Upon a contract becoming subsequently void
(c) Upon one of the parties becoming mentally unsound
(d) Upon one of the party’s demise [Only in the case
of personal contract]
of personal contract]
(e) Upon one of the parties becoming enemy alien.
(f) Upon the destruction of subject matter in a
contract.
contract.
(g) Upon change in legislation by the government.
In all the above cases we term it as void contract
For example– ‘A’
owner of a marriage hall accepted booking for a marriage at his hall but a day
before marriage the hall was destroyed by fire. Contract becomes void as it is
impossible to perform marriage after destruction of subject matter.
owner of a marriage hall accepted booking for a marriage at his hall but a day
before marriage the hall was destroyed by fire. Contract becomes void as it is
impossible to perform marriage after destruction of subject matter.
Remember there is indeed a difference between a void
contract and a void agreement.
contract and a void agreement.
Practice Exercise:
1. A contract which was
originally valid but becomes void due circumstances that are beyond the control
of the parties is known as
originally valid but becomes void due circumstances that are beyond the control
of the parties is known as
A. Valid contract
B. Voidable contract
C. Void contract
D. None of the above
Ans: C
2. A provision in the legal
system for the discharge of a contract where, subsequent to its formation a
charge of circumstances renders the contract legally or physically impossible,
is known as
system for the discharge of a contract where, subsequent to its formation a
charge of circumstances renders the contract legally or physically impossible,
is known as
A. Doctrine of frustration
B. Supervening impossibility
C. Both A. and B.
D. None of the above
Ans: C
3. Cases When A Valid Contract Turns Void:
A. Upon cancellation of a voidable contract
B. Upon a contract becoming subsequently void
C. Upon one of the parties becoming mentally unsound
D. All of the above
Ans: D
4. Akash decides to buy a horse from Mrs. Maya. The horse has died a
month before making the contract. This is a
month before making the contract. This is a
A. Valid contract
B. Void contract
C. Voidable contract
D. None of the above
Ans: B
5. Maya enters into a contract
with Spiderman from Spider land. After a few months Spider land is declared as
an enemy country. This contract is
with Spiderman from Spider land. After a few months Spider land is declared as
an enemy country. This contract is
A. Void
B. Valid
C. Voidable
D. None of the above
Ans: A
6. Sunder enters into a contract with the Government to manufacture arms
and ammunitions. Subsequently the Government passes an order that no private
party can manufacture arms and ammunitions. This is a
and ammunitions. Subsequently the Government passes an order that no private
party can manufacture arms and ammunitions. This is a
A. Valid contract
B. Void contract
C. Voidable contract
D. None of the above
Ans: B
7. ‘A’ owner of a marriage hall accepted booking for a marriage at his
hall but a day before marriage the hall was destroyed by fire. Contract is
hall but a day before marriage the hall was destroyed by fire. Contract is
A. Void
B. Voidable
C. Valid
D. None of the above
Ans: A
8. One of the parties becoming mentally unsound makes the contract
A. Void
B. Voidable
C. Valid
D. None of the above
Ans: A
9. Tommy enters into a contract with Prem to sell ganja. This is a
A. Void contract
B. Voidable contract
C. Valid contract
D. None of the above
Ans: A
10. A shopkeeper sells cigarettes to Ms. X who is above 18 years of age.
This is
This is
A. Void
B. Voidable
C. Valid
D. None of the above
Ans: C
