The Indian Contract Act, 1872 has made it clear that there is a thin line of difference between void and illegal agreement. A void agreement is one which may not be prohibited under law, while an illegal agreement is strictly prohibited by law and the parties to the agreement can be penalized for entering into such an agreement. The difference between void and illegal contracts is subtle, but important. In 1872, the Indian Contract Act defined the line between void and illegal agreements. A void agreement is most likely not allowed by law, and an agreement that is illegal is stringently not allowed by law. Difference between Void Agreement and Illegal Agreement In Pakistan Contract Act, 1872 it is clear that, there exist a dainty line of distinction in the middle of void and illegal agreement. A void agreement is agreement which is not restricted under law, but an illegal agreement is entirely restricted by law and the parties of agreement can be