The Indian Contract Act 1872
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at the time of its formation, but becomes void subsequently on account of the happening of some subsequent event. In other words, it is a contract which was valid originally, but becomes void (ceases to be enforceable by law) subsequently. Thus a void contract is not void ab initio. It becomes void subsequently, when it ceases to be enforceable by law. A void contract is perfectly valid and binding on the contracting parties until it becomes void, i.e., cases to be enforceable by law. It is for this reason that void contracts are known as ex post facto void contracts.
Examples of void contracts
(i) Subsequent impossibility As per Section 56 of the Indian Contract Act, 1872 a contract becomes void by supervening impossibility i.e., by subsequent impossibility of performance. Suppose X and Y contract to marry each other. After formation of the contract, but before the time fixed for the marriage, Y becomes mad. In this case, the contract becomes void because of impossibility of performance i.e., impossibility of marriage. (ii) Subsequent illegality As per Section 56 of the Indian Contract Act, 1872 a contract becomes void by supervening illegality i.e., subsequent illegality. Suppose X agrees to sell Y 1000 bottles of liquor on or before a specified date, but before the delivery, the Government introduces prohibition of sale of liquor. In this case, the contract becomes void due to subsequent illegality of the business. (iii) Impossibility of contingent event As per Section 32 of the Indian Contract Act, 1872, a contingent contract to do or not to do something on the happening of an uncertain future event becomes void, when that event becomes impossible. Suppose, A agrees to deliver imported garments to D when the ship carrying the garments arrives at Cochin port. But the ship sinks on the way. In this case, the contract becomes void.