Difference between Void and Voidable Contract | Business Law

Difference between Void and Voidable Contract
Legal Aspects of Business and Technology
Management Notes

Void Vs Voidable Contract: Void means something that is null and completely without legal force or binding effect. Void Contract is a contract that is null and without legal effect. This means that the contract is unenforceable by law and such a contract cannot be enforced by any of the parties to the contract. Void Contract and Void Agreement are two different things. Voidable means something that is not fully or completely void but may be avoided. Voidable Contract is valid, binding and enforceable by law.


Void Contract

Voidable Contract

1.Void contract is the contract which cannot be enforceable by law.Voidable contract is the contract which is enforceable by law at the option of one or more parties thereof, but not at the option of others. 
2.It is defined in Section 2 (j) of the Indian Contract Act, 1872.It is defined in the Section 10 of indian contract act.It is defined in Section 2 (i) of the Indian Contract Act, 1872.
3.A void contract cannot create any legal rights and is a total nullity.All contracts between adults and minors are void . A voidable contract takes its full and proper legal effect unless it is disputed and set aside by the person entitled to do so. 
4.In void contract, no party can claim the damages for the non-performance of the contract.In voidable contract, aggrieved party can claim the damages for any loss sustainable.
5.The contract is valid, but subsequently becomes invalid due to some reasons.The contract is valid, until the party whose consent is not free, does not revokes it.
6.A void contract originates by an agreement made by a minor, agreements without consideration,certain agreements against public policy,illegal objectives.A voidable contract originates by contracts brought about by coercion,undue influence and misrepresentation
7.In void contract, rights obtained by void contract ,if transferred to a third party,the third party does not,under any circumstances obtains a legal title.In voidable contract, unless the effected party declared the contract to be void,the third party gains legal title for the rights transferred,if he/she acts upon good faith.


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