NULL AND VOID

Detailed Definition

Null and Void represents a legal state in which a contract, agreement, or specific provisions within a contract cannot be enforced due to their conflict with established laws or regulations. It implies that the contract or provision is considered completely invalid from the outset and carries no legal powers or obligations.

Key Characteristics:

Inadmissible in Court: Null and void terms cannot be upheld in a court of law.
Non-Conformance with Legal Standards: Typically arises from contract provisions that violate constitutional, federal, or state law.
No Legal Effect: Parties involved are not bound by the invalid terms.

Examples

Racial Covenant in Property Deed:
- Ivenson sells a property and inserts a covenant in the deed restricting future sales to individuals of a minority race. This restriction violates the U.S. Constitution and thus is considered null and void.
Contract Not in Accordance with Employment Law:
- A company’s employment contract requires employees to work more hours than the legal limit without overtime compensation. This clause contravenes labor laws and would be regarded as null and void.
Contradictory Lease Agreements:
- A lease agreement contains a provision that looks to waive all tenant rights against property health standards. Such a stipulation goes against housing regulations and is thus null and void.

Frequently Asked Questions (FAQs)

What happens to a contract if a provision in it is null and void?

If a provision within a contract is deemed to be null and void, it means that specific part of the contract is unenforceable. The rest of the contract may still be valid and enforceable, depending on whether the contract can function without the voided provision.

How can a contract become null and void?

A contract can become null and void if it includes provisions that are illegal, unconstitutional, or otherwise in violation of public policy. This can also happen if one party was coerced into signing or if necessary contractual elements, such as mutual consent and consideration, are missing.

Can a contract be partially null and void?

Yes, a contract can be partially null and void. This typically involves specific clauses or terms being invalidated while the remaining provisions continue to be enforceable.

Are null and void synonymous with voidable?

No, null and void are not synonymous with voidable. Null and void signify incapability and incrimination of the inception (ab initio) contract or provision without legal effect. Voidable means a contract remains valid until one party chooses to void it due to issues such as misrepresentation or undue influence.

Voidable Contract: A legally valid contract that can be enforced until annulled by a party entitled to void the contract, often due to misrepresentation or lack of capacity.
Enforceability: The degree to which a contract’s terms and conditions are binding and legally valid, making them subject to court enforcement.
Public Policy: A principle that no subject can legally perform an act that tends to harm the public good or violate established societal rules and norms.

Online Resources

References

Blacks Law Dictionary
Restatement (Second) of Contracts
U.S. Constitution - Fourteenth Amendment
Uniform Commercial Code

Suggested Books for Further Studies

“Contracts: Examples & Explanations” by Brian A. Blum
“Understanding Contracts” by Jeffrey T. Ferriell
“The Law of Contracts and the Uniform Commercial Code” by Pamela Tepper

Real Estate Basics: NULL AND VOID Fundamentals Quiz

### What does it mean when a contract is null and void? - [ ] The contract is temporarily unenforceable. - [x] The contract or provision is legally invalid from inception. - [ ] The contract is up for renegotiation. - [ ] The contract is subject to court intervention. > **Explanation:** When a contract is null and void, it signifies that it is legally invalid from the outset and carries no enforceable rights or obligations. ### Which of the following provisions is likely to be considered null and void? - [x] A racial covenant in a property deed. - [ ] A clause requiring evidence of copious funds. - [ ] A stipulation for monthly rental payment. - [ ] A requirement for property insurance. > **Explanation:** A racial covenant in a property deed is in violation of constitutional protections against discrimination and would therefore be considered null and void. ### If a part of a contract is null and void, what happens to the rest of the contract? - [ ] The entire contract becomes void. - [x] The remaining provisions may still be enforceable. - [ ] The contract is automatically renegotiated. - [ ] All rights in the contract are forfeited. > **Explanation:** The rest of the contract may still be enforceable, depending on whether it can operate without the voided provision. ### What is a voidable contract? - [x] A contract that is binding unless annulled by a party entitled to void it. - [ ] A contract that is entirely unenforceable. - [ ] A temporally valid agreement subject to periodic review. - [ ] A documented but non-binding agreement. > **Explanation:** A voidable contract is a binding contract that can be annulled by a party designated to opt out due to specific legal vulnerabilities like coercion or misrepresentation. ### Null and void provisions typically arise due to what major factor? - [ ] High-interest rates. - [ ] Temporary market loss. - [x] Violation of laws or public policy. - [ ] Seasonal property trends. > **Explanation:** Null and void provisions usually arise due to violations of legal standards or public policy that forbid the enforcement of such terms. ### How is null and void different from 'unenforceable'? - [x] Null and void lacks legal effect from inception. - [ ] Unenforceable is due to governmental market economics. - [ ] It denotes property loss. - [ ] The terms and timing are distinctive. > **Explanation:** Null and void terms are devoid of legal enforceability from the start, whereas unenforceability might address transient or procedural legal barriers. ### What legal document might declare a contract provision null and void in U.S. property sales? - [ ] Mortgage Statement. - [ ] IPO Filing. - [x] U.S. Constitution. - [ ] Lease checklists. > **Explanation:** The U.S. Constitution, particularly its protections against discrimination, may render certain discriminatory property sale contract provisions null and void. ### Can a provision be reformulated instead of being termed null and void? - [ ] Absolutely notinal consideration. - [x] Yes, if modification resolves legal conflicts. - [ ] Sometimes only for short terms. - [ ] Solely computerized contrastural formats. > **Explanation:** Yes, if a provision can be reformulated such that it adheres to legal standards, it can potentially be revised rather than declared null and void. ### Who determines whether a part of a contract is null and void? - [ ] Economists - [x] Judicial authority - [ ] Realtors in training - [ ] Financial brokers > **Explanation:** A judicial authority typically determines whether a part of the contract is null and void based on legal consistency and compliance. ### The legal invalidation making a contract null and void occurs when? - [ ] Only after 30-day reviews. - [ ] After fiscal year filing. - [x] From the contract's inception. - [ ] Penalty interest compounding. > **Explanation:** Legal invalidation making the contract null and void occurs from the outset (ab initio) due to its inherent non-conformance to the law.