When it comes to contract law, there are two terms that often get confused – void and voidable. While they may sound similar, there are significant differences between the two. In this article, we will explore the differences between void contracts and voidable contracts in tabular form.

Void Contract

A void contract is considered to be no contract at all. It is an agreement without any legal force or effect. A contract may be classified as void on the following grounds:

Grounds Meaning

1. Agreement that is against public policy An agreement that goes against the laws and regulations set by the government

2. Agreement that is illegal in nature An agreement that is prohibited by law

3. Agreement with a minor party A contract with a minor under the age of 18 who is incapable of giving valid consent

4. Agreement with a person of unsound mind A contract with a person who is mentally incapable of understanding the terms and conditions of the contract

5. Agreement with a person who is disqualified by law A contract with a person who has been disqualified by law from entering into a contract

6. Agreement with a person who is not competent to contract A contract with a person who is not legally capable of entering into a contract

Voidable Contract

A voidable contract, on the other hand, is a contract that is valid but can be canceled or voided by one or both parties involved. It is a contract that contains some defects that can be corrected or waived. A contract may be classified as voidable on the following grounds:

Grounds Meaning

1. Agreement made under coercion or undue influence A contract made under pressure or intimidation that affects the free will of one or both parties

2. Agreement made by a person with a limited capacity A contract made by a person with a limited capacity such as a minor or a person of unsound mind

3. Agreement with a person who is deceived or misled A contract made with a person who was deceived or misled into entering the agreement

4. Agreement made with a person who is not competent to contract A contract made with a person who is not legally capable of entering into a contract

Key Differences between Void and Voidable Contracts

Now let`s take a look at the key differences between a void and a voidable contract:

Basis Void contract Voidable contract

Definition A contract that is not legally enforceable A contract that can be canceled or voided by one or both parties involved

Creation A void contract is never created; it is considered null and void from the beginning A voidable contract is created but can be canceled by one or both parties involved

Legal status A void contract has no legal status A voidable contract is valid until it is canceled or voided

Remedy A void contract cannot be remedied A voidable contract can be remedied through the cancellation or voiding of the contract

Effect of contract A void contract cannot be used to create legal rights A voidable contract can create legal rights until it is canceled or voided

Conclusion

In conclusion, it is essential to understand the differences between a void and a voidable contract in contract law. While a void contract is considered null and void from the beginning, a voidable contract is valid but can be canceled if it contains defects. Knowing the differences between these two concepts can help you better understand your contractual obligations and your legal rights.