What is the difference between void and voidable contracts?

Void and voidable contracts are two distinct categories in contract law that signify different levels of validity and enforceability. Understanding the disparities between them is crucial for navigating legal agreements effectively.

Void Contract:

A void contract is considered invalid from the outset, meaning it holds no legal force. These contracts lack essential elements required for a contract to be binding, such as legality or capacity. Common examples of void contracts include agreements involving illegal activities or contracts made with minors.

Voidable Contract:

In contrast, a voidable contract is initially valid but possesses certain conditions that allow one party to choose whether to enforce or terminate it. Factors like misrepresentation, undue influence, or lack of capacity can render a contract voidable. The aggrieved party has the option to affirm or void the contract, depending on the circumstances.

Implications:

The key difference lies in their enforceability; void contracts are unenforceable from the beginning, while voidable contracts can be enforced unless the affected party chooses to void them. Understanding these distinctions can help in determining the validity and implications of a contract.