1. Agreement Without Consideration: As per section 25 an agreement made without consideration is void except in the following cases, when it is:

- In writing and registered, or
- A promise to compensate for something done, or
- A promise to pay a debt barred by limitation law.

2. Agreement in Restraint of Marriage: As per section 26 Every agreement which restrains a person from getting married is void.

3. Agreement in Restraint of Trade: As per section 27, every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, is void.

4. Restraint of legal proceeding : Any clause in a contract, which restrains the parties from suing one another in the event of a dispute, is generally void. It comes under Section 28 of the Indian Contract Act, which states: "Every agreement, by which any party thereto is restricted absolutely from enforcing his rights 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."

5. Wagering Agreements: As per section 30, agreements by which parties stand to win or lose upon the happening or non-happening of an event uncertain, are void.

Case laws –

Balfour v. Balfour (1919) 2KB 571

This case has a great influence in Indian contract law. It laid down that general agreements between spouses are not enforceable as contracts if there is no intention to create legal relations.

Illustration:

A agrees to sell a unicorn to B. Unicorns do not exist in reality. This agreement is thus void as the subject matter of the agreement, viz., the unicorn, does not exist and cannot, therefore, be the object of a valid contract.

In other words, a void contract under the Indian Contract Act is an agreement that does not have legal binding force from the very beginning. It must be differentiated from a voidable contract, wherein the latter is either confirmed or invalidated at the instance of one or more of the parties on specified grounds, such as coercion, fraud, or undue influence.

VOIDABLE CONTRACT

Meaning:

Under the Indian Contract Act, a voidable contract is initially valid and enforceable, but due to certain defects in its formation, one party has the option to either affirm or void the contract. It is valid at its inception but may subsequently become void at the option of one or more of the parties to the contract. Until it becomes void, it remains enforceable.

When the Contract voidable-

1. Coercion: As per section 15, if consent to an agreement is obtained by coercion, the contract is voidable at the option of the party whose consent was so obtained. Coercion involves the use of force or threat to obtain consent.

2. Undue Influence: If section 16, if consent is obtained by undue influence, the contract is voidable at the option of the party whose consent was so obtained. Undue influence occurs when one party takes advantage of a position of power over another to obtain consent.

3. Fraud: As per section 17, if consent is obtained by fraud, the contract is voidable at the option of the party whose consent was so obtained. Fraud involves intentional deception or misrepresentation of facts.

4. Misrepresentation: As per section 18, if consent is caused by misrepresentation, the contract is voidable at the option of the party whose consent was so caused. Misrepresentation occurs when one party makes a false statement that induces the other party to enter into the contract.

5. Mistake: (Section 20,21, and 22): Where both parties to the agreement are labouring under a common mistake as to some fact which is essential to the contract, or one party is mistaken as to a fact, the contract may be avoided.

A mistake will have the following effects upon a contract only:

- Mistake of Fact (Section 20 and 21): The contract would be void if the parties to the agreement are under a mistake as to a matter of fact essential to the agreement; at the same time, the contract is voidable at the option of the party who was mistaken if only one of the parties is under a mistake as to a matter of fact.

- Mistake of Law (Section 21): A contract cannot be avoided in India on the ground of mistake of law. However, a mistake of foreign law is treated as a mistake of fact.

Where the contract is voidable on account of mistake the party entitled to rescind the contract, must do it within a reasonable time and restitute whatever he has received under the agreement.

Exceptions to Voidable Contracts:

If the aggrieved party affirms the contract after discovering the grounds for voidability, they lose the right to void the contract. Affirmation can occur explicitly through actions indicating intent to continue with the contract despite knowledge of defects.

Example of a Voidable Contract:

A sells a painting to B, falsely claiming it to be an original work of a famous artist. B later discovers that the painting is a forgery. B has the option to either affirm the contract and accept the painting or to void the contract and seek restitution. In conclusion, a voidable contract under the Indian Contract Act remains valid until the aggrieved party decides to exercise their right to void the contract due to coercion, undue influence, fraud, or misrepresentation. This legal framework provides protection to parties who enter into contracts under circumstances that compromise their free and informed consent.

UNENFORCEABLE CONTRACT

Meaning:

The Indian Contract Act, an unenforceable contract is one which cannot be enforced by a court of law due to the existence of certain legal deficiencies or non-compliance with some procedural requirement.

Essentials of an Unenforceable Contract:

Contingent Contract on an Impossible Event: As per section 36, a contract contingent upon the happening of an event becomes void if the event subsequently becomes impossible if the event is found to be impossible.

Exceptions to Unenforceable Agreements:

Where a party has partly performed a contract which cannot be enforced on account of its being unenforceable, the court may decree restitution to the extent of the performance. This is to ensure that a party shall not be unjustly enriched either by partial or full performance of an unenforceable contract.

Illustration of Unenforceable Contract:

A and B agree on the sale of land worth over a specified amount. The consideration involved would therefore require that such agreements be in writing and registered. Since it is not reduced to writing and registered as required by law, the agreement is unenforceable.

In other words, a contract under the Indian Contract Act is not legally enforceable if the instrument cannot enforce it in a court of law, either on account of lack of formalities or because it is contingent upon an impossible event. Grasping these distinctions will enable parties to have their contracts legally binding and enforceable under the provisions of the Act.

Understanding these distinctions is crucial for parties entering into contracts, as they dictate the legal consequences and enforceability of agreements under the Indian Contract Act.