When Both the Parties to an Agreement Have Different Subject-Matter in Mind, the Agreement is Void
Agreements are essential in business and transactions. It is a legal document that outlines the terms and conditions of the agreement between parties. However, for an agreement to be valid, both parties should have a common intention. If they don`t share the same subject-matter, the agreement may be void.
What is the Subject-Matter of an Agreement?
The subject matter of an agreement is the reason or purpose for which the parties are entering into the agreement. It can be an object, a service, a promise, or an act. For example, if two parties agree to sell a car, the subject matter is the car. If they agree to provide a service, the subject matter is the service. The subject matter should be specific, identifiable, and lawful.
What Happens When the Parties Have Different Subject-Matter in Mind?
If the parties have different subject-matter in mind, the agreement may be void. In other words, the agreement cannot be enforced by law, and both parties are not legally bound to fulfill their obligations.
For example, if party A agrees to sell a car to party B, but party B thinks they are buying a motorcycle, the agreement is void. In this case, both parties had a different subject matter in mind, and the agreement cannot be executed.
Similarly, if party A agrees to provide a service to party B, but party B thinks they are getting a different service, the agreement is void. This is because both parties did not share a common intention, and the subject-matter of the agreement was different.
Why is it Important to Have a Common Intention?
Having a common intention is essential because it ensures that both parties understand the subject matter of the agreement. It also ensures that both parties are on the same page and have agreed to the same terms and conditions.
If the parties do not have a common intention, it may lead to misunderstandings and disputes. For example, if party A sells a car to party B, but party B thinks they are getting a motorcycle, they may dispute the agreement and waste time and resources arguing.
Conclusion
In conclusion, when both parties to an agreement have different subject-matter in mind, the agreement is void. The subject matter of an agreement should be specific, identifiable, and lawful. It is important to have a common intention to avoid misunderstandings and disputes. As a professional, make sure to use keywords such as “common intention,” “void agreement,” and “subject matter” to optimize your article for search engines.