Document Fragment View

Matching Fragments

44. Section 65 applies when : (a) an agreement is discovered to be void & (b) when a contract becomes void. The Indian Contract Act makes a distinction between an agreement & a contract. An agreement not enforceable by law is said to be void (s. 2(g). A contract is an agreement enforceable by law--Section 2 (h). An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others is a voidable contract--Section 2(i). A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable Section 2(j). Therefore Section 65 applies to agreements which are ab initio void as also to voidable contracts which subsequently become void, (see Harnath Kuar v. Inder Bahadur, 50 I. A. 69 & Anand Mohan v. Gour Mohan, 50 I. A. 239).