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CMA Foundation · Fundamentals of Business Laws and Business Communication · Void and Voidable Agreements, No Consideration No Contract

Under the Indian Contract Act, 1872, how is an agreement defined as 'void'?

A void agreement is an agreement that is not enforceable by law, as stated in Section 2(g). It differs from a voidable contract, which is enforceable at the option of one or more parties but not at the option of the others.

  1. AAn agreement enforceable at the option of one party only
  2. BAn agreement not enforceable by lawCorrect
  3. CAn agreement made without free consent of the parties
  4. DA contract that has been performed in full

Explanation

Section 2(g) defines an agreement not enforceable by law as void. Option A describes a voidable contract under Section 2(i). Option C describes only one cause of voidability, not the definition of void.

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