DIFFERENCE BETWEEN VOID AGREEMENT AND ILLEGAL AGREEMENT

DIFFERENCE BETWEEN VOID AGREEMENT AND ILLEGAL AGREEMENT

Basis of difference
Void agreement
Illegal agreement
Scope
A void agreement is not necessarily illegal.
An illegal agreement is always void.
Nature
Not forbidden under law.
Are forbidden under law.
Punishment
Parties     are     not      liable      for     any punishment under the law.
Parties to illegal agreements are liable for punishment.
Collateral Agreement
It’s not necessary that agreements collateral to void agreements may also be void. It may be valid also.
Agreements      collateral       to      illegal agreements are always void.

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