Not All Contracts Are Legally Binding
Just because two people sign a document does not make it a valid contract. In law, not every agreement counts as a contract. Some agreements are not enforceable at all. These are called void agreements and void contracts.
A void agreement is something that was never valid from the beginning. A void contract is one that was legitimate at the time of creation but was later declared invalid for a legal reason.
For instance, an agreement between two people that commits an illegal act, like smuggling drugs, is null and void. It never had any legal value. On the other hand, if a person signs a contract to work abroad but the government bans travel to that country later, the contract becomes void after that point.
Difference Between Void and Valid Contract
A valid contract is one that meets all the legal requirements under the Indian Contract Act. That means there was free consent, lawful consideration, legal purpose, and both parties were capable of entering into a contract.
A void contract fails to meet one or more of these conditions. It may start off as valid but can become void due to a change in law or if something becomes impossible to perform.
Here’s an example. If a company signs a deal to deliver goods, and both sides agree properly with clear terms, it is a valid contract. But if a law is passed banning those goods before delivery, the contract becomes void.
Void Agreement Examples You See Often
A few agreements are automatically considered void under Indian law.
If someone agrees not to marry at all, or not to do business ever again, that agreement is void. Agreements in restraint of marriage, trade, or legal proceedings are not allowed.
Another common void agreement is with a minor. A person under 18 cannot legally enter into a contract, so any agreement with them is void from the start.
Contract Employees and Maternity Leave
Now let us talk about something more real for many working women in India. What if you're a contract employee, and you get pregnant Does an employer have to offer maternity leave
The Maternity Benefits Act, 1961 states that all women employees qualify for paid maternity leave, including contract employees as long as the certain criteria are met. The most critical criterion is: the woman must have worked for at least 80 days in the 12-month period immediately preceding her expected delivery date.
Many employers try to escape this responsibility by saying the person is not a permanent employee. But the law does not say maternity leave is only for permanent staff. If a woman is working regularly and meets the condition of 80 days, she is entitled to maternity leave.
When Maternity Contracts Turn Problematic
Sometimes, employers give short-term contracts to avoid giving maternity benefits. They may even try to end the contract before the due date. If this happens, the contract may be challenged as unfair or against the purpose of the Maternity Benefit Act.
In some cases, courts have considered such terminations as illegal and ordered compensation. The enforceability or validity of the contract and the intention in relation to it is of great significance in the exercise of discretion to uphold the contract. If the contract was made solely to avoid maternity rights, this could be declared a sham or be dealt with as voidable by the court.
Quick Recap
● A void agreement is never enforceable
● A void contract starts valid but becomes unenforceable later
● A valid contract meets all legal rules and is enforceable
● Contract employees can get maternity leave if they meet the work period condition
● Courts can step in if employers misuse contracts to deny benefits
FAQs
Q1. Can a company cancel a contract to avoid giving maternity leave?
If done unfairly, the woman can challenge it. Courts may call it unlawful.
Q2. Is a contract with a minor valid?
No. Any agreement with a minor is automatically void.
Q3. Can a contract become void after being signed?
Yes. If something changes, like a law or an impossible condition.
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