BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Furthermore, an illegal contract though resembling the void contract in that it also has no legal effect as between the immediate parties has this further effect that even transactions collateral to it became tainted with illegality.

Detailed explanation-2: -Collateral agreements of a void agreement may or may not be void i.e. they may be valid also. Conversely, collateral agreements of an illegal agreement cannot be enforceable by law as they are void ab initio.

Detailed explanation-3: -In case of illegal agreements even the collateral agreements become void.

Detailed explanation-4: -An agreement that violates any law or whose nature is criminal or is opposed to any public policy or immoral is an illegal agreement. These agreements are void ab initio, and so the agreements collateral to the original agreement are also void.

Detailed explanation-5: -A Collateral transaction means, a transaction other than the transaction affecting the immovable property but which is in some way connected with it.