Answer By law4u team
The difference between a void and a voidable contract lies in their legal enforceability and the circumstances under which they can be upheld or cancelled. 1. Void Contract: A void contract is not legally enforceable from the beginning. It has no legal effect, and the law treats it as if it never existed. Key Features: It is invalid ab initio (from the outset). No party can enforce it in a court of law. Arises when a contract lacks essential elements, such as lawful consideration, lawful object, mutual consent, or capacity. Examples: A contract for an illegal activity (like selling drugs). A contract with a minor if the law doesn’t allow them to contract. A contract without free consent or without consideration. 2. Voidable Contract: A voidable contract is initially valid and enforceable, but it becomes void at the option of one party, usually the aggrieved party. Key Features: It remains valid until the party with the right to cancel chooses to void it. Arises when one party’s consent is not free – due to coercion, fraud, misrepresentation, undue influence, etc. The aggrieved party can either: Enforce the contract, or Declare it void. Examples: A person signs a contract under threat or pressure. A contract entered into due to fraud or deception. Legal Consequences: Void Contract → No rights, no obligations. Neither party can seek legal remedy. Voidable Contract → Binding until the aggrieved party chooses to void it; remedies are available. Summary: A void contract is never valid in the eyes of law. A voidable contract is valid until cancelled by the party whose consent was compromised.