Example of void contract case?

One example of a void contract case is when a contract is entered into by a minor. In this situation, the contract is considered void because minors do not have the legal capacity to enter into a contract. As a result, the contract is not enforceable and the minor is not obligated to fulfill their obligations under the contract.

Case: Central London Property Trust Ltd v High Trees House Ltd

Facts:

- Central London Property Trust (CLPT) agreed to sell a leasehold interest in a property to High Trees House (HTH).
- The agreement was subject to a condition precedent that CLPT would obtain planning permission for a specific development on the property.
- CLPT failed to obtain planning permission.

Issue:

Was the contract void for impossibility?

Decision:

The court held that the contract was void ab initio (from the beginning).

Rationale:

The condition precedent was a fundamental aspect of the contract. Without planning permission, the property could not be developed as intended. The court found that the subsequent impossibility of obtaining planning permission made the performance of the contract impossible.

Consequences:

- The contract was declared void, as if it had never existed.
- Neither party had any legal obligations under the contract.
- The parties were restored to their original positions, as if there had been no agreement.