Difference Between Void Agreement And Voidable Contract Pdf
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- Void & Voidable Agreements
- Difference Between Void Agreement and Voidable Contract
- Difference Between Void Agreement and Void Contract
But on the other hand, a void contract is one that is valid at the time of creation but eventually becomes void, due to certain circumstances, which are beyond the control of parties concerned. In finer terms, it can be said that a void agreement, is always invalid, but if we talk about the void contract, is one that is enforceable in the beginning, but subsequently lacks it due to changes in government policy or some other reason. Basis for Comparison Void Agreement Void Contract Meaning Void agreement refers to an agreement which as per law, is unenforceable and has no legal consequences. Void contract implies a valid contract, that ceases to be enforceable by law, becomes a void contract, when it lacks enforceability. Void ab-initio It is void from the very beginning.
Void & Voidable Agreements
Essentially, the difference between void and voidable contracts is enforceability: a void contract is illegal and unenforceable; a voidable contract is legal and enforceable. A contract that is void is unenforceable, meaning that neither party has legal recourse against the other for a breach. A contract can be void from the beginning or become void due to certain circumstances, including:. A contract may be valid when it is executed, but later become void due to changes in the law or the circumstances of either party make fulfilling the contract impossible. A voidable contract is a valid agreement between two parties where usually only one of the parties is bound to the contract terms. A voidable contract can still be performed under the law; however, one party has the option to cancel the contract if the contract has one or more legal defects, such as:.
Difference Between Void Agreement and Voidable Contract
The term contract refers to an agreement between two private parties which creates mutual legal obligations. A contract can be either oral or written, although oral contracts are more challenging to enforce. There are specific types of contract agreements which must be in writing in order to be legally enforceable. It is imperative to understand the rules governing contracts in order to ensure that your contract is legally valid. Regarding contracts , the terms void and voidable are often used interchangeably and confused for each other. Although these two contract types seem similar, they are actually completely different.
Legality: A void agreement is unenforceable from the very beginning on both sides, a voidable contract becomes unenforceable only when the party at whose option it is voidable, rescinds it. Until it is avoided or rescinded by the parties entitled to do so by exercising his option in that behalf, it is a valid contract. Absence: of essential element Whereas the absence of any element of a valid contract other than free consent makes an agreement void, it is voidable only when the consent of one of the parties is not free, it is obtained by coercion, undue influence, fraud or misrepresentation. But under a voidable contract, the party rescinding the contract is entitled to get damages for any loss that he might have suffered on account of recession of the contract. But in a voidable contract, if the third party acquires rights in the subject matter in good faith and for value before the contract is repudiated, he acquires a better title.
1. A voidable contract is voidable at the option of one of the parties thereto. But a void agreement cannot be enforced by any one of the parties thereto. The defect in the case of voidable contract is curable and may be condoned, whereas a void agreement is void ab initio, and its defects are not curable.
Difference Between Void Agreement and Void Contract
Basis of difference Void agreement Voidable contract Void ab-intio It is void from the very beginning It is valid when made and continues to remain valid till it is repudiated by the aggrieved party. Which essential element of contract is missing It is void because an essential element of a valid contract is missing It is voidable because the consent of a party is not free. Enforceability It cannot be enforced by any party It continues to be enforceable if the aggrieved party does not repudiate the contract. Right of third party Third party does not acquire any rights.
It is void because an essential It is voidable because the Which essential element element of a valid contract is consent of a party is not of contract is missing missing free. It continues to be It cannot be enforced by any enforceable if the Enforceability party aggrieved party does not repudiate the contract.