If the consideration or subject of a contract is illegal, the contract is cancelled because it refutes the provisions of the law. This is the case for contracts that the court may find immoral or contrary to public policy, such as fraudulent agreements that could cause financial harm to a person. Any agreement that prevents someone from practising a legal profession, i.e. starting or continuing their activity or activity in exchange for a certain consideration, is therefore non-conclusive. b) If the parties are not aware of such acts:- There may be cases where, at the time of the contract, the parties do not know the reality of the contract, but learn, after a certain period of time, that the realization of such an act is impossible. Soon, the parties will learn of the impossibility of the delivery, the agreement becomes obsolete. These agreements are covered by the S.20 provisions regarding Mistake. In most cases, these agreements deal with the absence of the purpose of the contract at the time the contract was concluded. As a result, the agreement is marred by errors as to the existence of the purpose of the contract.
In the following example, the point is all the clearer. Any agreement including the marriage of a major (other than a minor) is a non-agreement. An agreement to do an impossible act in itself is a null and void. However, the contract is considered invalid, if B has several offices, it creates confusion in B`s mind with regard to the place of delivery. Another case is where a car was brought by the seller for an Rs 1,000 with Derer supply, to earn more if the car is found to be lucky. The agreement was considered inconclusive because “happiness” is a highly subjective term and its effects cannot be objectively assessed. Treaties like this therefore aim to limit human rights, which in the Constitution are linked to the nature of fundamental rights, which regard them as uneasy. However, the awarding of contracts is null and void, which means that the contract did not exist at all and that one of the parties is not obliged to fulfil obligations related to that contract. Empty agreements are agreements that are not enforced by the courts. Section 2 (g) of the Indian Contract Act defines an inconclusive agreement as “an agreement that is not legally applicable.” Therefore, in the event of an inconclusive agreement, there is no recourse to the contracting parties. Betting contracts relating to horse racing are not considered an agreement that has not been entered into, in accordance with the exception provided by this section. Section 27 is essentially based on public policy and applies to different cases to varying degrees.
In the case of Brahmaputra tea co ltd v. Scarth, it was decided by the court that any deference by a person`s own commitment is not invalid and would fall under exceptions in Section 27. These legal and judicial exceptions are explained below. Therefore, a person who buys another person`s business welfare has the privilege of imposing certain restrictions on that person`s activity. Restrictions are to prevent the seller from making similar transactions only within local borders. This is done to protect the rights of the buyer . However, the deduction should be proportionate depending on the nature of the transaction involved.