What is the Difference Between Void and Voidable Contract?

The main difference between void and voidable contracts lies in their enforceability and the legal options available to the parties involved. Here are the key differences:

• Void Contracts: These contracts are invalid from the beginning and are not legally binding. They are considered unenforceable because they involve an illegal act or are not properly formed. Examples of void contracts include contracts with minors for the sale of real property or contracts that call for an illegal act. Neither party can enforce a void contract, and if a party breaches it, the other party has no legal recourse.
• Voidable Contracts: These contracts are valid and legally enforceable until one of the parties decides to cancel or revoke them for legal reasons. Examples of voidable contracts include those entered under fraud, mistake, or duress, or contracts entered into with minors or persons of unsound mind. Only the innocent party has the ability to affirm and enforce a voidable contract. If the innocent party ratifies the contract and accepts its benefits, they cannot later disaffirm it.

In summary, a void contract is invalid from the start and cannot be enforced by either party, while a voidable contract is valid and enforceable until one party decides to cancel or revoke it for legal reasons.

Comparative Table: Void vs Voidable Contract

The main difference between void and voidable contracts lies in their enforceability and the circumstances under which they can be nullified. Here is a table comparing the two:

A void contract is an agreement that is illegitimate and unenforceable from the moment it is created, often due to a fundamental legal defect. On the other hand, a voidable contract is initially valid and enforceable, but it contains a flaw that may make it void if one party chooses to do so. Voidable contracts can be corrected through the process of ratification, which requires all involved parties to agree to new terms.