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Discussion > LAW > Agreement deeds >

illegal aggrements and collateral transactions.

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[ Scorecard : 86]
Posted On 11 February 2008 at 11:42 Report Abuse

1.All illegal agreements are void but all void agreements are not necessaarily illega.. Whether this statement is correct. Pl explain

2, An illegal agreement is  not only void as between the immedaite parties it has further effect that even the collaterl transactions to it become tainted with illegality. Collateral transaction is one which is subsidiary, incidental or auxiliary to the original contract. Can any one explain collateral transaction and with example i,e subsidiary, auxiliary and incidental. ?

 thanks in advance


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preeti modani

[ Scorecard : 110]
Posted On 11 February 2008 at 14:25

see all illegal agreements are void becoz making an illegal agreement is against law. n all void agreements are nt illegal ,there may b many other cases for agreement to be void, for example agreement with an minor is void. agreement with a pradanasheel women is void. n there may b many more cases.

Posted On 12 February 2008 at 15:14


Posted On 12 February 2008 at 15:21


Author Pulkit Gupta

[ Scorecard : 16443]
Posted On 16 February 2008 at 18:42

Illegal agremment r unlawful like agremment to kill etc. nut a void aggrement is not necessarily illegal because agreement with a person of unsound mind duruing period of unsoundness is void not illegal......

Author Pulkit Gupta

[ Scorecard : 16443]
Posted On 16 February 2008 at 18:47

Now let's come to collateral agreement .... Collateral agreement to illegal agreement are void . For example if A says to b that i will give you Rs.10000 if you kill C and for this purpose if he burrows money from Z then Z can't clain that amount fm. A because this agreement was collateral to a agreement which was illegal. Collateral agreement to void contract can be valid....

Author Pulkit Gupta

[ Scorecard : 16443]
Posted On 16 February 2008 at 18:47

That's it..... For more info. refer N.D. kapoor or P.C. tulsian

Murulidhara S

[ Scorecard : 86]
Posted On 21 February 2008 at 09:43

Thank you Pulkit. for giving good answer. I am following ND Kapoor. Muruli


[ Scorecard : 32]
Posted On 16 February 2011 at 13:01


i have my own co-operatve society in maharashtra.our former secretery had purchased a room of 170sq ft in MHADA scheme,by an agreement we had already paid him full amount,but he did not produce us a noc for registry.

Actually , that agreement was been made in 1997 on 20 RS  stamp paper.but unfortunatrely we did not notary or registered that agreement.and now when we approach him he said he will never registered us that room.but the possession of that room is still under are pls kindly suggest me what should i do in this case.

its urgent

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