As a professional, I understand that creating content that is both informative and optimized for search engines is essential. In this article, we will be discussing the difference between void and voidable contracts.

A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of their agreement. However, not all contracts are created equal. Some contracts are void, while others are voidable. Understanding the difference between the two is essential for anyone involved in contract negotiations or disputes.

What is a Void Contract?

A void contract is a contract that is not legally enforceable from the beginning. Simply put, it is not a contract at all. This occurs when the contract has a fundamental flaw that makes it impossible to enforce. Void contracts are not recognized by the law and are treated as if they never existed.

There are several reasons why a contract may be void. For example, a contract that involves illegal activities such as drug trafficking, gambling, or prostitution is considered void. Similarly, a contract that is entered into under duress or coercion is considered void.

What is a Voidable Contract?

A voidable contract, on the other hand, is a contract that is legally enforceable but can be voided by one of the parties involved. This type of contract is valid until it is voided by either party. A voidable contract is considered valid until it is canceled by one of the parties.

There are several reasons why a contract may be voidable. For example, a contract that is entered into by a person who is under duress or has been coerced is considered voidable. Similarly, a contract that is entered into by a person who is under the influence of drugs or alcohol is also voidable.

Difference between Void and Voidable Contract

The main difference between a void and voidable contract is that a void contract is not legally enforceable from the beginning, while a voidable contract is legally enforceable but can be voided by one of the parties involved. In other words, a void contract is not a contract at all, while a voidable contract is a valid contract until it is voided.

In conclusion, understanding the difference between void and voidable contracts is essential for anyone involved in contract negotiations or disputes. A void contract is not legally enforceable from the beginning and is not considered a contract at all. On the other hand, a voidable contract is legally enforceable but can be voided by one of the parties involved. Knowing these differences can help you avoid legal problems and ensure that your contracts are valid and enforceable.