A void contract is legally invalid from the beginning and does not create the intended contractual rights and obligations. Section 517 identifies categories of agreements that are void and also recognizes severability where only part of an agreement is invalid and the lawful remainder can operate independently.[2]
Examples
The statutory categories include certain unlawful restraints and other agreements that conflict with legal requirements or public policy.
Sources
- Nepal Law Commission, **National Civil Code, 2074 — Chapter 3: Validity of Contracts**, ss. 517–520. View source