In Zambian law, a contract becomes void or unenforceable when it lacks essential legal requirements or when statutory conditions are breached. A valid contract must be "an agreement which is legally binding oral or written between one or more parties that is enforceable by law" with reciprocal rights and obligations between the parties. When these elements are absent or compromised, the contract fails.
Several specific situations render contracts void under Zambian statute. Under the Bankruptcy Act, certain property settlements become void if the settler becomes bankrupt within a defined period [Bankruptcy Act, S.45]. Specifically, settlements made without good faith and valuable consideration are void against the trustee if bankruptcy occurs within two years of the settlement, or within ten years if no valuable consideration is proven [Bankruptcy Act, S.45]. Similarly, contracts entered into under the Housing Act may become void when a vendor fails to disclose required notices to a purchaser [Housing (Statutory and Improvement Areas) Act, S.11 and S.22].
Additionally, contracts may become unenforceable when parties lack proper authority to enter them. Where a person acts on behalf of an unincorporated company, that person may cease to be bound by or entitled to benefits under the contract, though a court may apportion liability between the company and the unauthorized agent [2023 HP 1966, S.]. A contract is also compromised if either party fails to perform their obligations or performs them in a manner inconsistent with the agreement, constituting breach and entitling the innocent party to legal remedies.