Every agreement by which any party is restricted absolutely from enforcing his rights under any contract by usual legal proceedings in the courts is void. However there is an exception to the effect that if two persons agree that any dispute arising between them shall be referred to arbitration and only the amount awarded in such arbitration shall be recoverable, is valid (section28).      


An agreement to do an act impossible in itself is void. – Section 56 (Para-1).

 A agrees with B to discover treasure by magic. The agreement is void.

b)    A contracts to marry B, being already married to C, and forbidden by the law to which he is subject to practice polygamy. The contract is void. But A must make compensation to B for the loss caused to her by the non-performance of the promise.

The examples cited above are cases of Pre-contractual Impossibility. Contracts that become impossible to perform by subsequent event are called Post-contractual Impossibility.   

List of the Reference Books

1.    Oxford Dictionary
By Jonathon Crowther ;
5th edition; Oxford University Press

2.    Commercial law and Industrial Law
By Arun Kumar Sen & Jitendra Kumar Mitra ;
Twenty Second enlarged edition; the World Press Private Limited

3.    Mercantile Law
By M.C Kuchhal

Mercantile Law in Pakistan
By A.G Chowdhury

4.    Business Law in India
By Surajit Sen Gupta