What is different between void and voidable?

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Definition of Void Contract

A void contract is a contract which is not enforceable in the court of law. At the time of formation of the contract, the contract is valid as it fulfills all the necessary conditions required to constitute a valid contract, i.e. free consent, capacity, consideration, a lawful object, etc. But due to a subsequent change in any law or impossibility of an act, which are beyond the imagination and control of the parties to the contract, the contract cannot be performed, and hence, it becomes void. Further, no party cannot sue the other party for the non-performance of the contract.

The contract becomes void due to the change in any law or any government policy for the time being in force in India. Along with that, the contracts which are opposed to public policy also ceases its enforceability. Contracts with incompetent persons are also declared void like minor, persons of unsound mind, alien enemy or convict, etc.

Definition of Voidable Contract

Voidable Contract is the contract which can be enforceable only at the option of one of the two parties to the contract. In this type of contract, one party is legally authorized to make a decision to perform or not to perform his part. The aggrieved party is independent to choose the action. The right may arise because the consent of the concerned party is influenced by coercion, undue influence, fraud or misrepresentation, etc.

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Answer

Void and Voidable: Understanding the Difference

Introduction:
When it comes to legal contracts, it is important to understand the concepts of 'void' and 'voidable.' Both terms refer to contracts that are considered invalid, but there are significant differences between the two. This article aims to provide a detailed explanation of the differences between void and voidable contracts.

Void Contracts:
A void contract is one that is deemed to have never existed from the beginning. It is invalid and holds no legal force or effect. Key characteristics of void contracts include:

1. Agreement: A void contract lacks the essential elements of a valid contract, such as mutual agreement and intent to create legal relations.
2. Enforceability: Since void contracts are considered null and void, they cannot be enforced by either party.
3. Legal Consequences: A void contract does not create any legal obligations or rights for the parties involved.
4. Invalidity: The invalidity of a void contract can be asserted by any person involved in the contract, including third parties.
5. Examples: Examples of void contracts include agreements made by minors, contracts that involve illegal activities, or contracts that lack consideration.

Voidable Contracts:
Unlike void contracts, voidable contracts are initially considered valid and enforceable. However, they possess a defect or flaw that allows one or both parties to avoid their obligations. Key features of voidable contracts include:

1. Defect: Voidable contracts contain a defect that makes them vulnerable to being voided by one or both parties.
2. Choice to Avoid: The party with the power to void the contract can choose whether or not to do so, based on the defect or flaw present.
3. Legal Consequences: If a voidable contract is avoided, it becomes void ab initio, meaning it is treated as if it never existed.
4. Time Limit: There is usually a specific time frame within which the party with the power to void must exercise their right. Once this time limit expires, the contract becomes valid and enforceable.
5. Examples: Examples of voidable contracts include contracts entered into under duress, contracts involving fraud or misrepresentation, or contracts with a lack of capacity.

Conclusion:
In summary, the main difference between void and voidable contracts lies in their enforceability and the stage at which they are considered invalid. Void contracts are considered null and void from the beginning, while voidable contracts are initially valid but can be avoided by one or both parties due to a defect or flaw. It is crucial to understand these distinctions to ensure a clear understanding of the legal implications and consequences associated with each type of contract.

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