When it comes to legal agreements, it`s essential to understand the difference between a void agreement and an unlawful agreement. While they may seem similar at first glance, they have distinct differences that can impact their legal validity.
Void Agreement:
A void agreement is one that is not legally binding or enforceable. There are several factors that can render an agreement void. One common example is when an agreement is made between parties who lack the legal capacity to enter into a contract, such as minors or mentally incapacitated individuals.
Another example is when an agreement is based on illegal activities or is against public policy. For instance, a contract to commit a crime or a contract for human trafficking would be considered void.
An agreement can also be considered void if it is based on a mistake or misrepresentation. For example, if a contract is signed under false pretenses, it may be considered void.
In most cases, a void agreement is considered null and void from the beginning, and it cannot be enforced by either party.
Unlawful Agreement:
An unlawful agreement, on the other hand, is a contract that is illegal and against the law. This can include agreements that are contrary to the public policy or violate criminal laws. For example, an agreement to sell drugs would be considered unlawful.
An unlawful agreement can also be one that seeks to restrict trade or limit competition. For example, an agreement between competing businesses to set prices or limit production would be considered unlawful.
Unlike a void agreement, an unlawful agreement is not automatically null and void. Instead, it may be enforceable in court until one of the parties objects to its enforcement.
Key Differences:
The primary difference between void and unlawful agreements is the reason for their invalidity. Void agreements are deemed invalid because they do not meet the legal requirements necessary for a contract, while unlawful agreements are not enforceable because they are expressly prohibited by law.
Another key difference is that void agreements are automatically considered null and void, while unlawful agreements need to be challenged in court.
Conclusion:
In conclusion, understanding the difference between void and unlawful agreements is crucial when entering into any legal contract. While they may seem similar, their legal implications are quite different. Void agreements are not legally binding, and they lack the legal requirements necessary to create a contract, while unlawful agreements are prohibited by law and are not enforceable.