What is a void contract?

Void contract definition:

A void contract is a type of agreement that is null and void from the start or becomes invalid at some time in the future.A lawful contract may become void at some point in the future. To be legitimate, a contract must contain key characteristics such as acceptance and offer, competent contracting parties, lawful consideration, lawful object, and free consent. If any of the contract’s fundamental features enumerated above are later rendered impossible, the contract will be null and void. Furthermore, once a contract is declared void, it is no longer legally binding.

Void Contract Example

Anuja made a contract with Pooja that she would purchase her phone, and in return, she will give pooja a packet of Brown sugar. Here this is void contract as it not lawful to provide drugs instead of Cash.

lets see another example of void contract where Rabin made a deal with Rojesh that he will purchase his laptop for 50k which actual price in the market is 2,00,000lakhs.Since Rojesh is mentally unstable, he will accept this contract however this contract is a void contract according to the contract law mentally unstable person cannot make a contract.

What is a voidable contract?

Voidable contract definition:

Voidable contracts are agreements that can only be made unlawful by one of the contracting parties; furthermore, only that party has the legal authority to enforce the contract.
A voidable contract grants one party the legal authority to determine whether or not to carry out their respective obligations. Furthermore, this agreement remains enforceable until the complaining party terminates it. A party that is unsatisfied may terminate the agreement for a variety of reasons, including the omission of all material information, misrepresentation or fraud, contractual error, breach of contract, and so forth.

Example of Voidable Contract

Imagine a situation in which an individual is compelled with a gun to execute a contract. Duress makes the contract voidable under these circumstances. Upon the cessation of coercion, the party that was threatened has the option to nullify the contract.

Consider nother scenario wherein a 16years old contractually agrees to acquire a premium gaming console. Contracts involving juveniles are deemed voidable in much of the legal system. The contract may be voidable contract and rendered unenforceable by the minor upon reaching the age of 18.

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Key differences between void and voidable contract

Some of the key differences between void and voidable contract are given below:

A void contract cannot be enforced by law, although a voidable contract can.
A void contract is not valid from the start, that is, when it was created. The voidable contract, on the other hand, is valid until the unhappy party fails to withdraw it within the time frame provided.
In a void contract, neither party has the right to demand damages for nonperformance. On the other hand, the unhappy party may demand reimbursement for any losses.

Lets observe the table below which outline the key differences between void and voidable contract

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