Differences between void and voidable agreement:
When dealing with contracts, the terms void and voidable are
widely used. A void contract is considered to be a legal contract that is
invalid, even from the start of signing the contract. On the other hand, a
voidable contract is also a legal contract which is declared invalid by one of
the two parties, for certain legal reasons.
While a void contract becomes invalid at the time of its
creation, a voidable contract only becomes invalid if it is cancelled by one of
the two parties who are engaged in the contract.
In the case of a void contract, no performance is possible,
whereas it is possible in a voidable contract. While a void contract is not
valid at face value, a voidable contract is valid, but can be declared invalid
at any time.
A contract can become void if it involves any illegal
activity, if the contract is made in such a way that it cannot be executed, or
if the contract is not properly structured. An example of a void contract is a
contract between a drug dealer and a buyer. This type of contract is void
because it involves an illegal activity.
There are many reasons attributed to a voidable contract. It
is a situation where one party of the contract may repudiate it. A contract involving
minors is an example of voidable contract. Although minors can enter into
contracts, these agreements cannot be enforced, as minors are at liberty to
change their stand.
While a void contract is nonexistent and cannot be upheld by
any law, a voidable contract is an existing contract, and is binding to at
least one party involved in the contract.
Summary:
1. While a void contract becomes invalid at the time of its
creation, a voidable contract only becomes invalid if it is cancelled by one of
the two parties who are engaged in the contract.
2. A contract can become void if the contract involves any
illegal activity, if the contract is made in such a way that it cannot be
executed, or if the contract is not properly structured.
3. A voidable contract is where one party in the contract may
repudiate it.
4. A void contract is nonexistent and cannot be upheld by any
law. On the other hand, voidable contracts are existing contracts, and are
bound to at least one party involved in the contract.
Difference between Void and Voidable Agreement:- (From source 2)
A void contract is considered to be a
legal contract that is invalid, even from the start of signing the contract. On
the other hand, a voidable contract is also a legal contract which is declared
invalid by one of the two parties, for certain legal reasons.
While a void contract becomes invalid at the time of its creation, a voidable contract only becomes invalid if it is cancelled by one of the two parties who are engaged in the contract.
In the case of a void contract, no performance is possible, whereas it is possible in a voidable contract. While a void contract is not valid at face value, a voidable contract is valid, but can be declared invalid at any time.
While a void contract is nonexistent and cannot be upheld by any law, a voidable contract is an existing contract, and is binding to at least one party involved in the contract.
While a void contract becomes invalid at the time of its creation, a voidable contract only becomes invalid if it is cancelled by one of the two parties who are engaged in the contract.
In the case of a void contract, no performance is possible, whereas it is possible in a voidable contract. While a void contract is not valid at face value, a voidable contract is valid, but can be declared invalid at any time.
While a void contract is nonexistent and cannot be upheld by any law, a voidable contract is an existing contract, and is binding to at least one party involved in the contract.
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