When it comes to legal agreements, the terms and conditions outlined in the document are crucial. From purchase agreements to employment contracts, certain factors can make an agreement void and unenforceable. It`s important to be aware of these factors to avoid any legal complications. In this article, we`ll discuss which of the following will make an agreement void.
1. Illegal or Unlawful Acts
If the purpose or terms of the agreement involve illegal or unlawful acts, the agreement becomes void. For instance, an agreement to sell illegal drugs is void and unenforceable in court. Similarly, agreements that aim to circumvent laws or regulations are also void.
2. Coercion, Duress or Undue Influence
If one party forces the other party into signing the agreement, it becomes void. Coercion, duress, and undue influence refer to situations where one party feels threatened or intimidated, leaving them no choice but to sign. For example, if an employer threatens to fire an employee if they don`t sign a contract, the agreement is void.
3. Misrepresentation or Fraud
If one party misrepresents facts or lies about important information, the agreement becomes void. Fraudulent activities can include false representations, concealment of material facts, or any other dishonest behavior that leads to the other party being misled.
4. Mistake or Misunderstanding
If one or both parties make an innocent mistake, the agreement may be void. This can happen when both parties misunderstand the terms of the agreement or when one party makes an error that the other party relies on. In such cases, the agreement is considered invalid because both parties did not have a meeting of the minds.
5. Lack of Capacity
If one party does not have the legal capacity to enter into a contract, the agreement is void. This can occur if one party is a minor, mentally incapacitated, intoxicated, or otherwise unable to understand the terms of the agreement. In such cases, the agreement is considered unfair and unenforceable.
In conclusion, there are several factors that can make an agreement void. It`s crucial to ensure that the terms and conditions of any agreement are lawful, fair, and understood by all parties involved. If you are unsure about the legality or enforceability of an agreement, it`s vital to consult a legal expert. Failure to do so can result in costly legal disputes.