Contracts are legal agreements entered into between two or more parties, with each party agreeing to perform specific duties or obligations. However, not all contracts are enforceable, and it is essential to understand the difference between void and voidable contracts.
A void contract is a contract that is not valid from the beginning. It is not enforceable, and it has no legal effect. Void contracts are usually declared invalid because they violate the law or public policy. For example, a contract to commit a crime or a contract to sell illegal drugs would be considered void.
On the other hand, a voidable contract is a contract that may be canceled or voided by one or more parties. A voidable contract is considered valid until it is canceled by one of the parties involved. This contract is considered to be legal until one party disaffirms it. Common examples of voidable contracts can include cases of fraud, undue influence, or duress.
To understand the difference between void and voidable contracts more clearly, let`s take a closer look at each of them.
– A void contract is not enforceable by law.
– A void contract is considered to be invalid from the beginning.
– Parties cannot perform the duties outlined in a void contract.
– A void contract cannot be enforced even if both parties agree to the terms.
– A voidable contract can be considered legal until disaffirmed.
– A voidable contract can be canceled or voided by one or more parties.
– Parties can perform the duties outlined in a voidable contract before it is canceled.
– A voidable contract may be enforced if the parties do not cancel the agreement.
In conclusion, understanding the difference between void and voidable contracts is essential, as it affects whether a contract is enforceable or not. While a void contract is not enforceable at any time, a voidable contract is considered to be valid until canceled by one of the parties involved. Therefore, it is important to seek legal advice before entering into any contracts, to ensure that they are legally binding and enforceable.