Step 1: Understanding the Meaning of Void Agreement:
According to Section 2(g) of the Indian Contract Act, “An agreement not enforceable by law is said to be void.” This means that even though an agreement may fulfill the basic requirements of offer and acceptance, it is void if it lacks legal enforceability.
Step 2: Reasons Why Agreements Become Void:
An agreement can become void due to several factors such as — illegality of object, impossibility of performance, absence of consideration, or contravention of statutory provisions. However, not all void agreements are illegal. While all illegal agreements are void, not all void agreements are illegal.
Step 3: Example for Better Understanding:
If A enters into an agreement with B to perform an impossible task, such as turning iron into gold, the agreement is void because it is not enforceable by law. However, if A agrees with B to commit a crime, it becomes both void and illegal.
Step 4: Final Conclusion:
Thus, the correct answer is (B) Agreement not enforceable by law, as a void agreement lacks legal validity or enforceability.