This document discusses void agreements under contract law. It defines a void agreement as one that is not enforceable by law from inception and has no legal effect. Agreements can be void if they lack elements like free consent, lawful consideration, or lawful object. Specifically void agreements include those by minors or incompetent persons, without consideration, in restraint of marriage/trade/legal proceedings, uncertain, or involving wagers. Voidable contracts differ in that they were initially valid but become unenforceable due to grounds like mistake, fraud or undue influence.

1. 4/15/2017
What is Void Agreement &
how a contract become voidable
Law of Contract

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Table of Contents
What is void agreement?......................................................................................................................2
Agreement which become void:..........................................................................................................3
Expressly Declared Void Agreements .............................................................................................3
Some discussions on void agreement are as follows: ..................................................................3
(1) Agreement by a Minor or a Person of Unsound Mind-.....................................................3
(2) Agreement Made Without Consideration- .............................................................................4
(3) Agreements in Restraint of Marriage-.....................................................................................4
(4) Agreement in Restraint of Trade- .............................................................................................5
(5) Agreement in restraint of legal proceedings- .........................................................................5
(6) Uncertain Agreements- .................................................................................................................6
(7) Wagering Agreement- ....................................................................................................................6
(8) Agreement Contingent on Impossible Events-......................................................................7
Difference between Void Agreement and Void Contract ..........................................................7
Differences between Voidable Contract and Void Agreement ................................................7
Voidable Contracts.................................................................................................................................8
Contracts can become voidable due to: ...........................................................................................9
Mistake ......................................................................................................................................................9
Fraud..........................................................................................................................................................9
Misrepresentation................................................................................................................................10
Undue Influence ...................................................................................................................................10
Contract by a Minor ............................................................................................................................11
References ..............................................................................................................................................12

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What is void agreement?
“An agreement not enforceable by law is said to be void” [Sec.2 (g)]. Thus a void agreement does not give
rise to any legal consequences and is void ab-initio. In the eye of law such an agreement is no agreement at
all from its very inception.
Literally: Void means having no legal value and agreement means Arrangement, promise or contract
made with somebody. So void agreement means an agreement that has no legal value.
Traditionally: “An agreement not enforceable by law is said to be void”. [Sec 2(g)]
LEGAL POSITION
A void agreement has no legal effect. An agreement which does not satisfy the essential elements of contract
is void. Void agreement confers no rights on any person and creates no obligation.
Example of void agreement: An agreement made by a minor, agreement without consideration, certain
agreements against public policy etc.
We have already dealt with the following types of void agree-ments in the preceding chapters, and will not
therefore discuss them here again: The preceding chapters, and will not therefore discuss them here again:
 Agreements by a minor or a person of unsound mind (Sec. 11).
 Agreements made under a bilateral mistake of fact material to the agreements (Sec. 20).
 Agreements of which the consideration or object is unlawful (Sec. 23).
 Agreements of which the consideration or object is unlawful in part and the illegal part cannot be
separated from the legal part (Sec. 24).
 Agreements made without consideration (Sec. 25).
Void agreements are those agreements which are not enforced by law courts. Section 2(g) of the Pakistan
Contract Act defines a void agreement as, “an agreement not enforceable by law”. Thus the parties to the
contract do not get any legal redress in the case of void agreements.
Void agreements arise due to the non-fulfillment of one or more conditions laid down by Section 10 of the
Indian contract Act. This Section states as follows:
All agreements are contracts if they are made with free consent of parties competent to contract, for a lawful,
consideration and with a lawful object, and are not hereby expressly declared to be void.
Nothing herein contained shall affect any law in force in India, and not hereby expressly repealed, by which
any contract is required to be made in writing or in the presence of witness, or any law relating to the
registration of documents.
From the above, it is quite clear that non-fulfillment of any of these conditions by one of the parties to a
contract shall make an agreement void. These conditions being:-
 Free consent of the parties;
 Competency of the parties to contract;
 Existence of a lawful consideration;
 Existence of a lawful object;
 Agreement being not included in the list of those specially declared to be void by the Indian
Contract Act by its Section 26, 27, 28, 29, 30, and 56;

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 Completion of certain formalities required by any other law of the country like transfer of Property,
Act, Company Act, etc.
Agreement which become void:
An agreement, which was legal and enforceable when it was entered in to, may subsequently become void
due to impossibility of performance, change of law or other reason. When it became void the agreement
ceases to have legal effect.
Expressly Declared Void Agreements
The last essential of a valid contract as declared by Section 10 is that it must not be one which is ‘expressly
declared’ to be void by the Act. Thus, there arises a question, as to what are ‘expressly declared’ void
agreements? The following agreements have been ‘expressly declared’, to be void by the Indian Contract
Act:
They are as follows:
 Agreement by a minor or a person of unsound mind.[Sec(11)]
 Agreement of which the consideration or object is unlawful[Sec(23)]
 Agreement made under a bilateral mistake of fact material to the agreement[Sec(20)]
 Agreement of which the consideration or object is unlawful in part and the illegal part cannot be
separated from the legal part [Sec(24)]
 Agreement made. without consideration.[Sec(25)]
 Agreement in restraint of marriage [Sec(26)]
 Agreement in restraint of trade [Sec(27)]
 Agreement in restrain of legal proceedings[Sec(28)]
 Agreements the meaning of which is uncertain [Sec(29)]
 Agreements by way of wager [Sec(30)]
 Agreements contingent on impossible events [Sec(36)]
 Agreements to do impossible acts [Sec(56)]
Some discussions on void agreement are as follows:
(1) Agreement by a Minor or a Person of Unsound Mind-
A person who has not completed his or her 18 years of age signifies as minor. Law acts as the guardian of
minors and protects their rights, because their mental facilities are not mature- they do not possess the
capacity of judge what is good and what is bad for them. Accordingly, where is a minor charged with
obligations and the other contracting party seeks to enforce those obligations against the minor, the
agreement is deemed as void.
A person who does not possess a sound mind or whose mental powers are not arranged or whose mental
condition is not under his or her own control. Any agreement by person of unsound mind is absolutely void
because he has no capacity to judge, what is good and what is bad for him.
ILLUSTRATION
a) A, 15 years old boy, made an agreement with B to give him Tk.1000. This is a void agreement.

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b) A mentally disordered man made an agreement with X to marry her, but this is not a valid
agreement.
(2) Agreement Made Without Consideration-
An agreement made without consideration is void, unless
1. it is expressed in writing and registered under the law for the time being enforce for the registration
of(documents), and is made on account of natural love and affection between parties standing in a
near relation to each other; or unless.
2. It is a promise to compensate, wholly or in part, a person who has already voluntarily done
something for the promisor, or something which the promissory was legally compellable to do, or
unless.
3. It is a promise, made in writing and signed by the person to be charged therewith, or by his agent
generally or specially authorized in the behalf, to pay wholly or in part a debt of which the creditor
might have enforced payment but for the law for the limitation of suits.
In any of these cases, such an agreement is a contract.
Explanation 1–Nothing in this section shall affect the validity, as between the donor and done, of any
gift actually made.
Explanation 2- An agreement to which the consent of the promisor is freely given is not void merely
because the consideration may be taken into account by the court in determining the question whether the
consent of the promisor was freely given.
ILLUSTRATIONS
a) A promises for no consideration, to give to B Rs. 1000; this is a void agreement.
b) A, for natural, love and affection, promises to give his son, B Rs. 1000. A puts his promise to B
into writing and registers it. This is a contract.
c) A finds be B’s purse and gives it to him. B promises to give A Rs. 50. This is a contract.
d) A supports B’s infant son. B promises to pay A’s expenses in so doing. This is a contract.
(3) Agreements in Restraint of Marriage-
Every individual enjoys the freedom to marry and so according to section 26 of the contract act “every
agreement is restraint of the marriage of any person, other than a minor, is void.” The restraint may be
general or partial but the agreement is void, and therefore, an agreement agreeing not to marry at all, or a
certain person or, a class of persons, or for a fixed period, is void. However, an agreement restraint of the
marriage of a minor is valid under the section.
It is interesting to note that a promise to marry a particular person does not imply any restraint of marriage
and is, therefore, a valid contract.
This section enact that agreement in restraint of the marriage of any person, other than a minor is void. In
the interest of the society, contracts for marriage are scrutinized with a close and vigilant suspicion of undue
influence, fraud or imposition. The law presumes constrictive fraud, on grounds of public policy, in
agreements respecting marriages since marriages of a suitable nature are of the deepest importance of the
wellbeing of the society, as upon the equality and mutual affection much of their happiness, sound morality,
and mutual confidence, hence every temptation of the exercise often undue influence, or a seductive interest

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in procuring a marriage is suppressed, for there is infinite danger that it may, under the guises of friendship,
confidence, flattery or falsehood, accomplish the ruin of person especially females. So the law—
a) prevents improvident, ill-advised, and often fraudulent matches;
b) Avoid all such contracts as tend to the deceit and injury, or encourage artifices and improper
attempts to control the exercise of free judgment;
c) Discountenances secret contracts made with prevents and guardians, whereby on a marriage, they
to receive a benefits
d) Renders invalid certain agreements in restraint of marriage.
ILLUSTRATIONS
a) A agrees with B for good consideration that she will not marry C. It is a void agreement.
b) A agrees with B that she will marry him only; it is a valid contract of marriage.
(4) Agreement in Restraint of Trade-
The constitution of India guarantees that the freedom of trade and commerce to every citizen and therefore
section 27 declares “every agreement by which any one is restrained from exercising a lawful profession,
trade or business of any kind, is to that extent void.” Thus no person is at livery to deprive himself of the
fruit of his labor, skill or talent, by any contracts that he enters into.
It is to be noted that whether restraint is responsible or not, if it is in the nature of restraint of trade, the
agreement is void always, subject to certain exceptions provided for statutorily.
ILLUSTRATION
An agreement whereby one of the parties agrees to close his business in consideration of the promise by
the other party to pay a certain some of money , is void, being an agreement is restraint of trade, and the
amount is not recoverable, if the other party fails to pay the promised some of money. (Mad hub Chander
vs. Raj Kumar).
But agreements merely restraining freedom of action necessary for the carrying on of business are not void,
for the law does not intend to take away the right of a trade to regulate his business according to his own
discretion and choice.
ILLUSTRATION
An agreement to sell all produce to a certain party, with stipulation that the purchaser was bound to accept
the whole quantity, was held valid because it aimed to promote business did not restrained it (Mackengie
vs. Striramiah). But where in a similar agreement the purchaser was free to reject the goods (i.e. was not
bound to accept the whole quantity tendered) it was held that the agreement was void as being in restraint
of trade (Sheikh Kalu vs. Ram Saran)
(5) Agreement in restraint of legal proceedings-
Every agreement, by which any party thereto is restricted absolutely from enforcing his right under 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, is void to that extent. Section 28 declares the following two
kinds of agreements void:
a) An agreement by which a party is restrained absolutely from taking usual legal

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Proceeding, in respect of any rights arising from a contract.
b) An agreement which limits the time within which one may enforce his contract
Rights, without to the time allowed by the limitation act.
ILLUSTRATION
In a contract of fire insurance, it was provided that if a claim is rejected and a suit is not filed within three
months after such rejection, all benefits under the policy shell be forfeited. The provision was held valid
and binding and the suit filed after three months was dismissed. (Baroda spinning Ltd. vs. Satyanarayan
Marine and Fire Ins. Com. Ltd.)
Exception 1: This section shell not render illegal a contract by which two or more persons agree that
any dispute which may arise between them in respect of any subject or class of subjects shell be referred to
arbitration and that only the amount awarded in such arbitration shell be recoverable in respect of the dispute
so referred.
Exception 2: Nor shell this section render illegal any contract in writing, by which two or more persons
agree to refer to arbitration any question between them which has already arisen, or affect any provision of
any law in force for the time being as to references to arbitration.
(6) Uncertain Agreements-
“Agreements, the meaning of which is not certain, or capable of being made certain, are void” (Sec-29).
Through Sec-29 the law aims to ensure that the parties to a contract should be aware of the precise nature
and scope of their mutual rights and obligation under the contract. Thus, if the word used by the parties are
or indefinite, the law cannot enforce the agreement.
ILLUSTRATION
a) A agrees to sell to B “a hundred tons of oil.” There is nothing whatever to show what kind of oil
was intended. The agreement is void for uncertainty.
b) A is dealer in coconut oil only, agrees to sell to B “a hundred tons of oil.” The nature of A’s trade
affords an indication of the meaning of the words, and A has entered into a contract for the sale
of one hundred toms of coconut oil.
c) A agrees to sell to B “one thousand mounds of rice at a price to be fixed by C.” As the price is
capable of being made certain, there is no uncertainty here to make the agreement void.
d) A agrees to sell to “his white house for rupees five hundred or rupees one thousand.” There is
nothing to show which of the price was to be given. The agreement is void.
Further, an agreement “to enter into an agreement in future” is void for uncertainty unless all the terms of
the proposed agreement are agreed expressly or implicitly. Thus, an agreement to engage a servant
sometime next year, at a salary to be mutually agreed upon is a void agreement.
(7) Wagering Agreement-
Literally the word ‘wager’ means ‘a bet’ something stated to be lost or won on the result of a doubtful issue,
and, therefore, wagering agreements are nothing but ordinary betting agreements. Thus where A and B
mutually agree that if it rains today A will pay B Tk.100 and if it does not rain B will pay A Tk.100 or C
and D entered into agreement that on tossing up a coin, if it fall head upwards C will pay D Tk.50 and if
falls tail upwards D will pay C Tk.50, there is a wagering agreement.

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In Tracker vs. Hardy Cotton, L.J., described a ‘wager’ ad follows: “The essence of gaming and wagering
is that one party is to win and the other to lose upon a future event which at the time of the contract is of an
uncertain nature- that is to say, if the event turns out the other way he will win.”
Agreement by way of wager, void. Section 30 lays down that “agreements by way of wager are void; and
no suit shell be brought for recovering anything alleged to be won on any wager, or entrusted to any person
to abide the result of any game or other uncertain event on which any wager is made,” Thus, where A and
B enter into an agreement which provides that if England’s cricket team wins the match, A will pay B Rs.
100, and if it loses B will pay Rs. 100 to A, nothing can be recovered by the winning party under the
agreement, it being a wager. Similarly, whether C and D enter into a wagering agreement and each deposits
Rs.100 with Z instructing him to pay or give the total sum to the winner, no suit can be brought by the
winner for recovering the bet amount from Z, the stake-holder. Further, if Z had paid the sum to the winner,
the looser cannot bring a suit, for recovering his Rs.100, either against the winner or against, the stake-
holder, even if Z had paid after the loser’s definite instructions not to pay. Of course the looser can recover
back his deposit if he makes the demand before the stake-holder had paid it over to the winner (Ratnakalli
vs. Vochalapu). But even such a deposit cannot be recovered by a loser in the States of Maharashtra and
Gujarat where such an agreement is void and illegal.
(8) Agreement Contingent on Impossible Events-
“Contingent agreements to do or not to do anything if an impossible event happens are void, whether the
impossibility of the event is known on not to the parties to the agreement at the time when it is made.” (Sec.
36)
ILLUSTRATION
1. A agrees to pay B Rs.1000 (as a loan) if two straight line should enclosed a space. The agreement
is void.
2. A agrees to pay B Rs.1000 (as a loan) if B will marry A’s daughter, C. C was dead at the time of
the agreement, the agreement is void.
3. Agreements to do Impossible Act-
“An agreement to do an act impossible in itself is void.” (Sec, 56 Part-1)
ILLUSTRATION
a) A agrees with B to discover treasure by magic. The agreement is void. [Section 56].
b) A agrees with B to run with a speed of 100 Kilometer per hour. The agreement is void
Difference between Void Agreement and Void Contract
Many think that the terms void agreement and void contracts are one and the same thing. However, this is
not true, as the Indian Contract Act, 1872 clearly defines that a void agreement is void ab-initio, in essence,
it is null since it is formed. But on the other hand, a void contract is one that is valid at the time of creation
but eventually becomes void, due to certain circumstances, which are beyond the control of parties
concerned. So, let’s take a look at the article presented before you, to understand the difference between
void agreement and void contract.
Differences between Voidable Contract and Void Agreement
The point of distinction between Voidable Contract and Void Agreement are given below.

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1. A voidable contract is voidable at the option of one of the parties thereto. But a void agreement
cannot be enforced by any one of the parties thereto.
2. The defect in the case of voidable contract is curable and may be condoned, whereas a void
agreement is void ab initio, and its defects are not curable.
3. A voidable contract does not become void unless the party at whose option it is voidable repudiates
it. But a void agreement is void ab initio.
4. A voidable contract implies a contract, in which the consent of one of the parties to contract is not
free, whereas a void agreement denotes an agreement, which does not fulfill the essentials of a valid
contract.
5. In case of a voidable contract, a person is entitled to compensation for loss or damages suffered by
him on account of the non-performance of contract. But in a void agreement, as it is unenforceable
at law there does not arise any question of compensation due to the non-performance of the
agreement.
Voidable Contracts
When a contract is voidable, a party to the contract is able to cancel or revoke the contract.
When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract
voidable at the option of the party whose consent was so caused. A party to contract, whose consent was
caused by fraud or misrepresentation, may, if he thinks fit, insist that the contract shall be performed, and
that he shall be put on the position in which he would have been if the representations made had been true.
Exception: If such consent was caused by misrepresentation or by silence, fraudulent within the meaning
of section 17, the contract, nevertheless, is not voidable, if the party whose consent was so caused had the
means of discovering the truth with ordinary diligence.
Explanation: A fraud or misrepresentation which did not cause the consent to a contract of the party
on whom such fraud was practiced, or to whom such misrepresentation was made, does not render a contract
voidable.
Example : A, intending to deceive B, falsely stated that his scooter runs 35 kilometers in one liter of petrol
and thereby induced B to buy the scooter. But actually the scooter runs 24 kilometers in one liter. The
contract is voidable at the option of B.
A voidable contract, unlike a void contract, is a valid contract which may be either affirmed or rejected at
the option of one of the parties. At most, one party to the contract is bound. The unbound party may
repudiate (reject) the contract, at which time the contract becomes void.
Typical grounds for a contract being voidable include coercion, undue influence, misrepresentation or
fraud. A contract made by a minor is often voidable, but a minor can only avoid a contract during his or her
minority status and for a reasonable time after he reaches the age of majority. After a reasonable period of
time, the contract is deemed to be ratified and cannot be avoided. Other examples would be real estate
contracts, lawyer contracts, etc.
When a contract is entered into without the free consent of the party, it is considered a voidable contract.
The definition of the act states that a voidable contract is enforceable by law at the option of one or more
parties but not at option of the other parties. A voidable contract may be considered valid if it is not cancelled
by the aggrieved party within a reasonable time.

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Contracts can become voidable due to:
Mistake
A contract can be canceled on the grounds of a mutual mistake of fact. But remember, failure to read the
contract doesn't make a contract voidable.
A mistake is an error in understanding facts, meaning of words or the law, which causes one party or both
parties to enter into a contract without understanding the responsibilities or outcomes. Such a mistake can
entitle one party or both parties to a rescission (cancellation) of the contract. A mistaken understanding of
the law (as distinguished from facts) by one party only is usually no basis for rescission since "ignorance
of the law is no excuse."
Mistake covers a broad set of situations, and courts often distinguish between unilateral mistake and mutual
mistake. A unilateral mistake is an incorrect belief of one party that is not shared by the other party. A
mutual mistake is an incorrect belief shared by both parties. Courts have traditionally held that mutual
mistakes are more likely than unilateral mistakes to make a contract voidable.
Fraud
Fraud consists of five elements:
1) The making of a false statement;
2) With knowledge that the statement is false or with reckless disregard as to whether or not the
state-ment is false or true;
3) With the intent that the listener rely on the statement;
4) With the result that the listener relies on the statement;
5) With the consequence that the listener is harmed.
Smith was thinking of buying the house of Jones. Smith noticed watermarks on the ceiling, but Jones stated
that the roof had been repaired and was in good condition. Smith was not told that the roof still leaked and
that the repairs had not been able to stop the leaking. Smith bought the house. Sometime later, heavy rains
caused water to leak into the house. Smith claimed that Jones was guilty of fraud. Was he correct? Yes.
The statement that the roof had been repaired would suggest to the ordinary person that the repairs had been
successful. This conclusion was reinforced by the statement that the roof was “in good condition.” The
net result was that what was said and what was not said had the effect of representing an untrue condition
of the roof and therefore misled Smith and caused him to be harmed. Because this was done with knowledge
of the true facts, Jones had committed fraud.
An essential element in proving fraud is to prove that one relied on the statement which is alleged to be
fraudulent. If the alleged victim had the same knowledge of the true facts as the alleged wrongdoer, no
fraud is present. If the victim should have known the facts or if a reasonable person would have known
that the statement was not true, there is no fraud. If false statements are made after a contract has been
signed, it is obvious that there was no reliance on the false statements and therefore there is no fraud.
Smith offers to sell Jones a car and represents that the car has never been in a wreck. Jones, who has worked
on cars for many years, notices some dents underneath the car that could only have been made by a wreck.
Jones buys the car anyway. Even if Smith knew this statement was false and was trying to deceive Jones,
there is no fraud since Jones did not rely on Smith’s representation.

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Ordinarily, a statement of opinion cannot be the basis for fraud liability. The theory is that a person hearing
the state-ment should recognize it as merely the speaker’s personal viewpoint.
Misrepresentation
Misrepresentation refers to a statement made by a party to a contract that induces another to enter into a
contract, which can be interpreted, as false or untrue. The misrepresentation must be both false and
fraudulent, in order to make the party making it liable for damages.
"One who, in the course of his business, profession or employment, or in any transaction in which he has a
pecuniary interest, supplies false information for the guidance of others in their business transactions, is
subject to liability for pecuniary loss caused to them by their justifiable reliance upon the information, if he
fails to exercise reasonable care or competence in obtaining or communicating the information."
Undue Influence
An agreement may be set aside if it was not in fact entered into voluntarily by both of the parties. If either
party entered into the agreement because of undue influence or physical or emotional duress, it may be set
aside.
Undue influence arises in a situation where a confidential relationship exists and one party has such
influence over the other party that the other party’s free will is dominated to the benefit of the influencing
party. Confidential relationships which may result in undue influence can be such things as the relation-ship
of an elderly parent and an adult child, a physician and patient, an attorney and client, or any other
relationship of trust and confidence in which one party exercises a significant amount of control or influence
over another. Because of the possibility that a person in such a confidential relationship may dominate the
will of another and take unfair advantage of that person, the law presumes that undue influence has occurred
if the dominating party obtains any benefit from a contract made with the person alleged to have been
unduly influenced. The contract is then voidable and may be set aside unless it can be proven that no such
undue influence took place.
Smith, upon reaching the age of 75 and being in ill health, decided to move in with his oldest adult son. He
lived with his oldest adult son for several years prior to his death. Upon his death, it was discovered that
he deeded all of his property to his oldest son. The younger son contested the deed, stating that his older
brother exercised undue influence over their father in getting him to give all of his property to the oldest
son. A presumption of undue influence would arise which would have to be overcome by the oldest son.
One way to overcome this presumption would be to show that the father consulted a disinterested third
party, preferably an attorney, without the older son being present, and was counseled by the third party.
This is not absolute proof of the lack of undue influence, but it is a very important element of proof.
Persuasion and argument are not in themselves undue influence. An essential element of undue influence
is that the person making the contract does not exercise his free will. Unless there is a confidential
relationship, such as that between a parent and child, Courts are most likely to take the attitude that the
person who claims to have been dominated was merely persuaded.
An agreement made under duress may be set aside if the duress took the free will of the person seeking to
avoid the contract away. In a duress situation, a party enters a contract to avoid a threatened danger. This
threat may be a threat of physical harm to person or to the property of someone.
A person makes a contract under duress when there is violence or the threat of violence to the extent that
the person is deprived of his free will and makes the contract to avoid harm. The threatened harm may be

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directed at a relative of the contracting party as well as against the contracting party. If a contract is made
under duress, the agreement is voidable.
Lack of capacity. A person must have the legal ability to form a contract in the first place. A person
who is unable, due to intoxication or mental impairment, to understand what she is doing when she signs a
contract may lack capacity to enter into a contract.
Coercion, undue influence, misrepresentation and fraud. Getting consent for a contract in a number of
shady ways can make a contract voidable. Contracts entered into based on coercion, threats, false
statements, or improper persuasion can be voided by the party who was the victim of the unfairness.
Coercion generally means to impose ones will on another by means of force or threats. Coercion may be
accomplished through physical or psychological means. It may occur in a variety of contexts, such as unfair
trade practices, which prohibits coercion to sell insurance in most states.
Definitions vary by state and federal laws. For example, one state defines coercion as a crime when a person
compels or induces a person to engage in conduct which the latter has a legal right to abstain from engaging
in, or to abstain from engaging in conduct in which he has a legal right to engage, by means of instilling in
him a fear that, if the demand is not complied with, the actor or another will cause physical injury to a
person or cause damage to property.
Contract by a Minor
Falling under the umbrella of capacity, a contract entered into by a minor typically may be voided by the
minor or by his or her guardian. After reaching the age of majority (18 in most states), however, if he or
she doesn't cancel the contract within a reasonable period of time, the contract can become binding and
enforceable.
With some exceptions, a contract made by a minor is voidable. The minor, in other words, may avoid the
legal liability under a contract. Upon reaching the age of majority, a minor may affirm or ratify the contract
and therefore make it contractually binding on him. Any expression of the minor’s intention to avoid the
contract will accomplish avoidance.
A minor can only avoid a contract during his minority status and only for a reasonable time after he reaches
the age of majority. After a reasonable period of time, the contract is deemed to be ratified and cannot be
avoided.
When a minor avoids a contract, there are certain rules of law regarding the effect on any property received
by the minor under the contract. If the minor still has what he received from the other party, he must return
it to the other party upon seeking to avoid the contract. If he does not return the property in such a situation,
he cannot avoid the contract. If the minor cannot return what he has received pursuant to the contract
because it has been spent, damaged or destroyed, he still can avoid the contract. He can avoid the contract
and is only required to return that part of the consideration he still has. Even if he has nothing left, or what
he has is damaged property, he still can avoid the contract.
CASE LAW
Helen, age 17, wanted to buy a motorcycle. She did not have the money to pay cash but persuaded the
dealer to sell a cycle to her on credit. The dealer did so partly because Helen said that she was 22 and
showed the dealer an identification card that falsely stated her age as 22. Helen drove the motorcycle away.

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A few days later, she damaged it and then returned it to the dealer and stated that she avoided the contract
because she was a minor. The dealer said that she could not do so because (a) she had misrepresented her
age and (b) the motorcycle was damaged. Can she avoid the contract? Yes. In a state that follows the
common law rule, neither the damage to the property nor Helen’s misrepresentation of her age will prevent
her from avoiding the contract. Some states would hold that because of the misrepresentation of age, Helen
must pay for the damage that she has done, but she can avoid the contract. A few states would hold that
Helen cannot avoid the contract because she misrepresented her age.
References
http://legal-dictionary.thefreedictionary.com/Void+Agreements
http://keydifferences.com/difference-between-void-agreement-and-void-contract.html
http://sirmaqsood1.blogspot.com/2011/06/void-agreements.html
https://sol.du.ac.in/mod/book/view.php?id=644&chapterid=366
http://mercantilelaws.blogspot.com/2012/05/what-is-void-agreement.html
http://www.investopedia.com/terms/v/voidable-contract.asp
http://thelawstudies.blogspot.com/2016/08/what-is-void-agreement.html
http://accountlearning.com/void-agreement-meaning-void-agreement-vs-voidable-contract/
https://www.slideshare.net/SiddharthRanjan/contracts-an-over-viewpdf
https://uslegal.com/