When it comes to contracts, there are certain circumstances where an agreement may be considered void. However, there are also exceptions to these void agreements that can make them legally enforceable. As a professional, I`ve compiled this article to discuss the exceptions of void agreements.
First, it`s important to understand what a void agreement is. A void agreement is a contract that is considered to have never been legally valid. This means that neither party is bound to uphold any of the terms outlined in the agreement. Void agreements can be caused by a variety of factors, such as illegality, lack of capacity, or fraud.
Now, let`s dive into the exceptions to void agreements. These exceptions can give the contract legal validity even if it would have otherwise been considered void.
If one party has already received benefits or compensation from the other party, even under a void agreement, they may be required to provide restitution. For example, if someone hires a contractor to complete a project, but the agreement is later found to be void, the contractor may be entitled to compensation for the work they have already completed.
Estoppel occurs when one party relies on the terms of a void agreement to their detriment. For instance, if someone purchases a car from an individual who does not actually own the car, but has a void agreement that suggests otherwise, the purchaser may still be entitled to the car under the principle of estoppel.
Ratification occurs when a void agreement is later validated by the parties involved. For example, if someone buys a property under a void agreement, but later both parties agree to the terms and sign a new, valid agreement, the original agreement may be considered ratified.
4. Partial performance
If a contract is otherwise void but one party has partially performed their obligations under the agreement, they may be entitled to compensation for their work. For example, if a person hires a contractor to build a garage, but the agreement is later found to be void, the contractor may still be entitled to compensation for any work they have already completed.
Waiver occurs when one party gives up their right to enforce a particular provision of a contract. For example, if someone hires a contractor to complete a project, but later discovers that the agreement was void due to lack of capacity, they may still choose to waive this clause and allow the contractor to complete the work.
In conclusion, while void agreements may seem like dead ends, the exceptions outlined above can provide avenues for legal enforceability. As a professional, it`s important to ensure that information related to legal definitions and exceptions is accurate and clear to readers.