Most of the time, people come to make mistakes between a void contract and a voidable contract, and as a result of that, they have to face problems legally. They need to have a clear concept about both of them separately. Even people have to keep clear working needs for both of the contracts.
It is good to remember that the law regarding contracts in India is governed by the Indian Contract Act 1872. Generally, this particular law is preserved for the custom of any incident, trade. But it is sorry to say that the law of contract is not able to take care of the whole agreement as most of the agreements do not fulfill the requirement of a contract.
For your benefit, today you just keep your eyes on this page for a little bit of time as this article will give information about the definition of each, the difference between them. Just take a look below.
What is a void contract?
Generally, contracts come as void when they cannot come to be enforced by some other persons. It is only a contract that will be not used legally. The court looks at it very carelessly. In a word, void contact is not a legal contract and it is not enforced by the court but it contracts only.
That means each legal contract is void contact but, a void contract may be a legal contract or not. You need to keep your eyes on the below points.
- The contract involves illegal activity
- It goes against public policy
- It involves an illegal party.
- It is impossible to perform lawfully.
What Is a Voidable Contract?
Voidable contracts are completely valid agreements but one or both can void the contract at wish. That means, one party cannot be enforced to believe its validity. In the contract, there must not be enforceability if one party is a minor or mental patient.
Generally, Voidable contracts come in working condition when one party is bound for giving services and the other has more power. The voidable contract must go following some rules. Without specific language, the contract comes to be written so as both of the parties can easily void the contract. Just look at the brief information given below.
- It is fraud or misrepresentation
- The terms are unconscionable
- Mutual mistake.
Example of Voidable Contract
Suppose if it is to be done that ‘A’ threatens ‘B’ to enter into a contract for selling a piece of land to ‘A’ at Rs. 1. Here the contract is voidable from B and B can go to choose either selling the land to A at the agreed price or B can come to avoid the contract approaching a court.
Easy understanding of the difference between Void Contract or Voidable agreement.
Void Contract vs Voidable Contract
|1. In a void contract, no obligation or right arises to the parties from a valid contract. These types of contracts are unlawful.||1. This particular contract can go at the option of one party, or the desire of one party to rescind or continue.|
|2. A void contract may provide illegal liabilities.||2. It goes for validity until and unless rescinded.|
|3. A contract does not carry any rights.||3. The contract goes with an enforceable right till it is not essential.|
|4. The contract becomes void if the contract ceases to be enforceable.
|4.A contract comes voidable for only one condition and the consent of agreement carries coercion, undue influence, or misrepresentation.|
|5. A void contract cannot have validity through the consent of parties.||5.This contract comes valid by the party who has a right to rescind the giving right.|
So go through the information mentioned above and understand the exact importance of two. Then you can easily make your work easy and comfortable.