Question

Which of these agreements are void?

• A. An agreement to refer the dispute to arbitration
• B. An agreement in a fire policy to lodge claim within 6 months
• C. An agreement to pay time barred debt
• D. None

Answer 1

The correct option is D None

Void agreements are those agreements which are not enforced by law courts. Section 2(g) of the Indian Contract Act defines a void agreement as, “an agreement not enforceable by law”. Thus the parties to the contract do not get any legal redress in the case of void agreements.

Here, all the agreements are valid in nature as they are enforceable by law for example, :

• an agreement to refer a dispute to arbitration is valid and not void only when parties to it mutually consent for it.
  
• an agreement in a fire policy to lodge claim within 6 months is not void until the limitation period lapse.
  
• Time-barred debt is money a consumer borrowed and didn't repay but which is no longer legally collectable because a certain number of years have passed. Time-barred debt is also known as debt that is beyond the statute of limitations. An agreement to pay the time barred debt is also valid in nature.