Agreements are an essential part of any business transaction. They ensure that both parties are on the same page regarding the terms and conditions of the deal. However, even the most carefully drafted agreements can be rendered void in certain circumstances. In this article, we will explore some of the factors which may render an agreement void.
If the subject matter of an agreement is illegal, then the agreement is void. For example, an agreement to commit a crime or an agreement to sell illegal drugs is void.
2. Lack of capacity
An agreement may be void if one or both parties lack the capacity to enter into the agreement. For example, a contract signed by a minor is void.
3. Fraud or Misrepresentation
An agreement may be void if one party has been misled by the other party through fraud or misrepresentation. If one party was induced to enter into the agreement by the other party`s dishonesty, then the agreement may be declared void.
An agreement obtained through duress or coercion is void. If one party was forced to enter into the agreement under threat of harm or loss, then the agreement may be rendered void.
An agreement may be void if the parties were mistaken about the subject matter of the agreement. If both parties were mistaken about a material aspect of the agreement, then the agreement may be declared void.
An agreement may be void if it is unconscionable. An unconscionable agreement is one that is so one-sided that it is unfair to one party. For example, an agreement that allows one party to keep all the profits while the other party bears all the costs is unconscionable and may be declared void.
In conclusion, there are several factors which may render an agreement void. Illegality, lack of capacity, fraud or misrepresentation, duress, mistake, and unconscionability are all grounds for declaring an agreement void. As a professional, it is important to ensure that any content related to agreements includes these factors so that readers can gain a comprehensive understanding of what may render an agreement void.