When it comes to contracts, it is essential to understand the different types of contractual agreements that exist, including void and voidable contracts. Both terms sound similar but have different meanings and implications. In this article, we will explore the similarities and differences between void and voidable contracts.

Similarities between Void and Voidable Contracts

Void and voidable contracts are similar in that they are both contracts that lack enforceability. This means that neither of these contracts can be upheld in a court of law.

In the case of void and voidable contracts, they are both considered to be unenforceable due to some kind of defect in the agreement. In other words, there is a flaw in the agreement that renders it invalid.

Differences between Void and Voidable Contracts

The primary difference between void and voidable contracts lies in the nature of the defect that renders them unenforceable.

A void contract is a contract that was completely invalid from the start. This means that the contract was never legally binding and cannot be upheld in a court of law. Void contracts are usually the result of some kind of legal non-compliance, such as a contract that involves illegal activity or a contract that violates public policy.

On the other hand, a voidable contract is a contract that is initially legally binding, but can be avoided or cancelled by one of the parties involved. This is typically due to some kind of mistake, fraud, misrepresentation, undue influence, or duress. Voidable contracts can be enforced if neither party decides to take any action to cancel them.

Another difference between void and voidable contracts is the effect they have on the parties involved. Void contracts have no legal effect whatsoever, meaning that neither party is bound by the agreement. In contrast, voidable contracts remain valid until they are cancelled by the party that has the right to do so. This means that the other party can still enforce the contract until it is declared void.

Conclusion

In conclusion, both void and voidable contracts are unenforceable agreements, but they differ in nature. Void contracts are invalid from the start, whereas voidable contracts are initially legally binding but can be cancelled due to some kind of defect. It is important to understand the differences between these two types of contracts to avoid confusion and legal disputes.