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.
Answer By AnikDear Client, Section 10 of the Indian Contract Act, 1872, states the conditions for a valid contract, such as – free consent, lawful object, lawful consideration, competent parties, etc. Now, the difference between void and voidable contract is – Void Contract: This is a contract that is “void ab initio” which means that it is void from the very beginning and cannot be legally enforceable. If any of the conditions mentioned under Section 10 are not satisfied, then the contract can be void and it will have no legal effect. Neither party can enforce a void contract in the court of law. Voidable Contract: This is a contract that is valid in the beginning and has a legal effect and can be enforceable, however, later on, it can be voidable by one party if the other party has engaged in any conduct like – misrepresentation, fraud, coercion, or undue influence. In this case, the aggrieved party has the right to render the contract void if he wishes to do so. I hope this answer helps. For any further queries, please do not hesitate to contact us. Thank you.
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