Void Contingent Agreements

April 18, 2023 By Admin

Void Contingent Agreements: Understanding the Risks and Legal Ramifications

Void contingent agreements can be a bit of a legal minefield for even the most experienced business professionals. These types of agreements, also known as illegal contracts, are agreements that are deemed unenforceable by law due to their violation of public policy or laws. The consequences of entering into such agreements can be significant, so it`s important to understand what void contingent agreements are and how to avoid them.

What are Void Contingent Agreements?

Void contingent agreements are contracts that have certain provisions that are deemed to be illegal by law. These provisions generally violate public policy, including statutes, regulations, or case law. They are thus nullified by the law, making the entire agreement unenforceable. Examples of void contingent agreements can include contracts for illegal activities such as gambling, contracts that waive employee rights, or contracts that violate antitrust laws.

Understanding the Risks

The risks of entering into void contingent agreements are significant. When a contract is unenforceable, parties cannot claim damages for any breach of the contract. In such cases, the parties must look to other legal remedies, which may not always provide a satisfactory outcome. Moreover, entering into illegal contracts can lead to criminal liability or reputational damage for the parties involved.

Legal Ramifications

Void contingent agreements can have severe legal ramifications. In some cases, parties who enter into them may face criminal charges. For example, if two parties enter into a contract to perform illegal activities, they may both be held liable for violations of the law. In other cases, void contingent agreements can lead to civil liability, where one party sues the other for damages. However, as noted earlier, since these contracts are unenforceable, the person suing may not have a leg to stand on.

How to Avoid Void Contingent Agreements

Avoiding void contingent agreements is critical to avoiding legal complications. To prevent such contracts, it`s essential to understand the laws and regulations governing the activities being contracted. In other words, before entering into an agreement, parties should always do their due diligence to ensure that no provisions of the agreement violate any laws or public policy.

Additionally, to protect against void contingent agreements, parties should always seek legal advice before entering into contracts. An experienced attorney can review the proposed agreement and identify any clauses that may violate laws or public policy. This can help prevent potentially costly legal battles and ensure that the contract is legally enforceable.


Void contingent agreements can have severe legal and financial ramifications that can impact businesses and individuals alike. By understanding what void contingent agreements are, the risks and legal implications involved, and how to avoid them, parties can protect themselves from costly legal battles and reputational damage. In essence, it is essential to remember that it`s always better to err on the side of caution when entering into contracts to prevent any legal complications.