A voided agreement is a legal term that refers to an agreement that is deemed invalid and unenforceable from the very beginning. This means that the agreement is considered as though it never existed, and neither party is bound to perform any duties or obligations that were outlined in the document.
There are various reasons why an agreement may be voided, including:
1. Lack of capacity: If one of the parties was not mentally or legally competent at the time of signing the agreement, it may be deemed voided.
2. Fraud: An agreement can be voided if one of the parties deliberately and knowingly misrepresented or concealed facts that were essential to the agreement.
3. Duress or coercion: If one party was coerced into signing the agreement or forced to do so under duress, it may be considered voided.
4. Illegality: An agreement can be voided if its purpose is illegal or against public policy.
5. Mistake: An agreement can be voided if both parties made a material mistake that had a significant impact on the agreement.
Once an agreement is deemed voided, it is as though it never existed, and any obligations or duties outlined in the agreement are no longer enforceable. Any payments made under the agreement may be recoverable, and any property transferred may need to be returned to its original owner.
It is important to note that a voided agreement is not the same as a voidable agreement. A voidable agreement is one that is initially valid but can be voided later at the option of one or both parties due to reasons such as fraud, duress, or undue influence.
In conclusion, a voided agreement is one that is considered legally invalid from the very beginning due to certain reasons such as lack of capacity, fraud, duress, illegality, or mistake. It is important to understand the implications of a voided agreement and seek legal advice if you are involved in a situation where an agreement may be deemed voided.
