5 Difference Between Void and Voidable contract

Void and voidable contract are the two branches of the Contract. There are mainly three types of contract which are valid contract, void contract and voidable contract. Void contract are the contracts which are not enforceable by the law. It comes from the valid contracts. While the voidable contracts are enforceable by the law.

Many times, we get confused by void and voidable contracts. There are many similarities in void and voidable contracts but there are also many differences. In this article we will discuss definitions and differences between the void and voidable contract.

Void vs Voidable contract

Sr. No.	Void Contract	Voidable Contract
1	Not enforceable by the law	Enforceable by the law
2	Is defined in the Indian contract Act section 2(j)	Defined in the Indian contract Act section 2 (i).
3	No one has the right to claim damages	Aggrieved party can claim for the damages
4	When a contract work remains incomplete or impossible by both the parties it becomes a void contract.	When the consent is not free for the contract in this case the contract becomes voidable.
5	Valid at the time of its formation, but after some time, it became void.	Remains valid until aggrieved party not cancel the contract

Void contract

 Void contract is a contract which is not enforceable by the law. It is a contract which is initially a valid contract and after that with some subsequent impossibility it becomes a void contract. It is defined in the Indian contract Act section 2(g). Many aspects which are expressly void are unlawful objects, agreement without consideration, Agreement in restraint of marriage and trade, restraint of legal proceedings, agreement void for uncertainty, agreement by way of wager etc.

From the above elements if anyone is missing the contract becomes void. Due to substituent changes or arises of the impossibility also makes a valid contract into void contract. When a contract is made for work which has to be performed in some days. But that work is not performed due to some subsequent impossibility. In this case this becomes a void contract.

Example

. X booked a singing concert by the z singer after 2 months. X gave him some booking amount. But 10 days after the concert, the singer dies in an accident. In this case x don’t have any choice because the concert is booked for the singer z. In this case this contract became a void contract.

All the contract which is made for the work has to be performed. But that work is not performed due to some subsequent impossibility. All these kinds of contract cases are void contracts.

Voidable contracts

The contracts which are enforceable by the law is known as the voidable contracts. In this contract from both the parties one has the legal rights to make decisions about the contract. This consent is very important. Legal formalities arise due to the consent with fear, undue influence, fraud and Misrepresentation etc.

In this contract it remains valid until the aggrieved party does not want to end this. Voidable contract terms as a free will for one party. Voidable contract is defined in the Indian contract act section 2(i). In the voidable contract the effected party can claim the loss damage. In this party has the option to make contract void at any time.

Reasons to become a voidable contract

1. Mistake in the contract.
2. Fails to disclose the material facts.
3. Undue influence.
4. Not free consent.
5. Breach of contract.
6. Fraud and Misrepresentation

Example

Ravi made a contract of bailment with Anita to purchase his 100 products at a price 500. Anita purchases all the products but she finds some products are faulty. In this case Anita has the option to make the contract void. Because in this case Ravi hind the facts of the products.

. If someone does marriage forcefully this is also a voidable contract.

Main differencee between void and voidable contract

1. Void contract is void from the beginning and it doesn’t come under the law enforcement. While voidable contract is enforceable by the law.
2. Void contract is defined in the Indian contract Act section 2(j). Voidable contract is defined in the Indian contract Act section 2 (i).
3. No one has the right to claim damages in the void contract. But the aggrieved party can claim for the damages in voidable contract.
4. When a contract work remains incomplete or impossible by both the parties it becomes a void contract. When the consent is not free for the contract in this case the contract becomes voidable.
5. Voidable contract remains valid until aggrieved party not cancel the contract. While void contract valid at the time of its formation. But after some time, it became void.

Conclusion

Void and voidable contract are the branches of agreement and contract. Each agreement is a contract but not every contract is an agreement. Main difference between a void and voidable contract is the law involved in the contract. Law enforcement in contract but becomes voidable and when no law is not involved in the contract it becomes void contract.

This is all about the Void and voidable contract. Hope this article will be helpful for you. If you have any questions and doubts please feel free to comment on us. For more interesting topics like this please go through our website.